Saudi Arabia Raises Minimum Limit for Entities Reporting Economic Concentration

"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Raises Minimum Limit for Entities Reporting Economic Concentration

"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)

The Saudi government has raised the minimum limit of annual sales at which entities should notify the authority of economic concentration transactions to SAR 200 million ($53.3 million) from SAR 100 million ($26.6 million).

The decision was based on the annual review made by the General Authority for Competition (GAC), which considered the best international practices.

This came under the approval of GAC’s board of directors to amend Article No. 2 of the executive regulations of the Competition Law to read: “Entities seeking to join an economic concentration transaction – or the persons legally authorized to represent them - must notify the Authority at least 90 days prior to the completion of such transaction, if the total value of the entities' annual sales exceeds SAR 200 million.”

The amendment was approved during the 80th board meeting, with other resolutions adopted.

The GAC board followed up on the preliminary results of investigations into the motor sector, issuing several directives.

It also reviewed the investigation results of a lawsuit related to two entities in the food delivery and restaurants sectors, approving a settlement.

The board approved another settlement between two entities operating in the construction sector and nodded to exempting two entities operating in the electric vehicles (EV) sector for exclusive and unified contracts.

In other news, the Saudi Contractors Authority revealed that over 1,000 e-contracts worth more than SAR 308 million ($82.1 million) have been concluded on the Kingdom’s “Muqawil” platform, launched in 2021.

According to the Authority, 600 contracts have been signed for the implementation of framed structures without materials. Meanwhile, the contracts for implementation with materials reached 300.

The value of the highest contract concluded on Muqawil exceeded SAR 50 million ($13.3 million).

Muqawil also recorded SAR 10,000 ($2.6 thousand) as the lowest value of a typical contract concluded on the platform.



OPEC Sees Robust Oil Demand in Third Quarter

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)
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OPEC Sees Robust Oil Demand in Third Quarter

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, said the group anticipates exceptionally strong demand for oil in the third quarter of this year, with only a narrow gap expected between supply and consumption in the months that follow.

According to Russia’s state news agency on Monday, Al Ghais shared these assessments with reporters on the sidelines of last week’s OPEC seminar in Vienna. He indicated that the organization foresees demand rising by 1.3 million barrels per day on an annual basis in 2025, driven largely by a resilient global economy.

He explained that this outlook suggests a particularly robust increase in consumption during the third quarter. Demand is also projected to stay healthy into the fourth quarter, while the difference between production and usage should remain minimal. Al Ghais noted that this dynamic is among the key factors encouraging the alliance of eight oil-producing countries to consider raising output once again.

OPEC’s latest oil market outlook, published last Thursday, forecasts that global demand will average 105 million barrels per day this year. The report predicts demand will climb further to 106.3 million barrels per day in 2026 and reach 111.6 million barrels per day by 2029.

Meanwhile, eight members of the broader OPEC+ coalition - which includes Russia among other allies - are moving to phase out production cuts that have been in place for years to help stabilize the market.

Five sources told Reuters that OPEC+ producers are leaning toward agreeing on another production increase in September.