Published: March 2023
On March 28th, 2023, the General Authority for Competition (“GAC”) announced its decision to raise the threshold of the minimum annual sales requirement on which an economic concentration is required to be notified (for the purpose of obtaining the GAC’s clearance, to proceed with the transaction) from 100 million Saudi riyals (approx. USD 26 million) to 200 million Saudi riyals (approx. USD 52 million).
Within the context of the relevant press release, the GAC observed that the decision to raise the threshold took into account the “best international practices, and aspects related to the variables of the national economy and the level of market competitiveness, in addition to facilitating procedures and easing financial burdens, especially on small and medium-sized companies”.
The GAC’s decision came as no surprise, as the GAC had announced last December that it was in the process of reviewing the threshold of the minimum annual sales requirement, as well as the relevant filing fees (for the application for obtaining the GAC’s clearance); and, even, invited the public to participate in the review process of the proposed amendments. Needless to say, the decision was long anticipated, and was hailed as a welcomed change.
It should be noted that the amendment to the threshold will be effective immediately, from March 29th, 2023. Furthermore, while the contemplated amendment to the filing fees has not been announced as of today, we understand that it is expected to follow within the year.
How Al Tamimi & Company can help?
Please reach out to Tamimi & Co. if you need to learn more about the recent changes to the competition law framework, in KSA.
Key Contacts
Christopher Webb
Partner
c.webb@tamimi.com
Omar Alhumaid
Senior Counsel
o.alhumaid@tamimi.com