Saudi Arabia has been lauded internationally by a United Nations commission for its formidable legal structure and the exceptional strength of its competition laws. The Kingdom has proudly achieved the highest evaluation tier in the latest Competition Law Systems Report for 2023, as released by the UN Economic and Social Commission for Western Asia. This prestige surpasses the already impressive ‘developed’ status it held in the year 2020, as reported by the Saudi Press Agency.
The report’s Competition Law Index, which gauges the rigor of regulatory systems, utilizes eight critical criteria to classify maturity levels. In a noteworthy accomplishment, Saudi Arabia scored a flawless seven regarding its legislative frameworks that govern economic concentration operations.
Saad Al-Masoud, the spokesperson for the General Authority for Competition (GAC), credited this progress to the unwavering support from the nation’s leadership, which is instrumental in attaining the objectives outlined in Vision 2030. These goals include enhancing a sustainable business environment, spurring economic growth, and elevating consumer welfare.
Al-Masoud highlighted that this recognition stems from significant strides in various domains, including the enforcement of laws that combat monopolistic behavior and anti-competitive agreements. Additionally, he emphasized the GAC’s diligent efforts in scrutinizing economic concentrations.
He also identified several other elements that have been crucial in maintaining a competitive business landscape, characterized by fairness, transparency, and strict adherence to sound competition principles.
The nascent competition system in Saudi Arabia was set up in 2004, underwent a transformation in October 2017 with the renaming to GAC and an updated organizational structure, and achieved financial and administrative independence. A royal decree in March 2019 further endorsed the revised competition system.
Over the past two decades, the GAC has levied fines close to SR1 billion (approximately $270 million) against about 252 companies in violation of its regulations, as Al-Masoud revealed in a recent interview. The GAC remains committed to protecting market integrity, while simultaneously encouraging innovation and a diverse array of products and services.