- What is Economic Concentration and When Must it be Reported?
What is Economic Concentration?
Economic concentration refers to any act resulting in the total or partial transfer of ownership of assets, rights, stocks, shares, or obligations of an establishment to another establishment, or the combining of two or more managements into a joint management. This includes Mergers and Acquisitions (M&A) and Joint Ventures.
When Must it be Reported?
According to Article Twelve of the Implementing Regulations, establishments must report an economic concentration process if the total annual sales value of all participating establishments exceeds (200,000,000) Two Hundred Million Saudi Riyals.
Legal Deadline for Reporting
The report must be submitted to the General Authority for Competition at least (90) days before the completion of the concentration process.
How to Calculate Sales
- Reliance is placed on the financial statements of the last completed fiscal year.
- In case estimation is impossible or a fiscal year is incomplete, the value is estimated according to the establishment's activity and as the case requires.
Compliance with this report is essential to avoid penalties and to ensure the deal does not negatively affect competition in the market.
Reference: Implementing Regulations of the Competition Law (Article 12) - General Authority for Competition
- - Personalized Alerts
- - Alerts through WhatsApp and Email
- - Instant Search
- - Export to Excel
- - Excel Quantity Tables
- - Awarding and Proposals Data
- - Suppliers Data
- - Complete Data (including what was removed from Etimad)
- - Preparing Technical and Financial Proposals
Related Links
- ◾ Bidding in Government Projects
- ◾ Classification Certificates for Tenders
- ◾ Rights & Options
- ◾ Violations & Penalties
- ◾ Prohibitions & Concentration
- ◾ Construction Tenders in Saudi Arabia
- ◾ Data Collection and Analysis in Tender Evaluations
- ◾ Are You Eligible to Enter a Tender?
- ◾ construction contract
- ◾ contract templates pdf
- ◾ Preparing Tender Approval Documents
- ◾ Etimad Subscription Fee
- ◾ Local Content Preference
- ◾ operations and maintenance contract
- ◾ Pre-registration in Etimad Tenders
- ◾ supply contract
- ◾ Tenders Alerts Guide
- ◾ Organizing Unified Procurement via Endorsing Competitions
- ◾ Localization of Saudi Industries
- ◾ Excellence in Government Tender Offers
- ◾ Qualifying for Government Tenders
- ◾ Tender Application Guide
- ◾ What is the benefit of the Etimad Platform?
- ◾ Comprehensive Guide for Government Tenders
- ◾ Legal Compliance in Competition Accreditation
- ◾ Avoid These Mistakes
- ◾ Government Bidding System
- ◾ Etimad Platform for New Companies
- ◾ Pricing Services and Purchases
- ◾ Successful Bids
- ◾ Types of Tenders
- ◾ Regulations and Laws
- ◾ Investment 2026
- ◾ Budget 2026
- ◾ Tender Opportunities
- ◾ Tenders Guide
- ◾ Bid Evaluation
- ◾ Strategies for Winning Tenders
- ◾ Technical Standards for Tenders
- ◾ Preparing Technical Proposals
- ◾ Tenders and Investment
- ◾ Tender Strategies
- ◾ 2026 Projects
- ◾ Digital Opportunities 2026
- ◾ Budget Numbers
- ◾ 2026 Sectors
- ◾ Victim Compensation
- ◾ Investigation Powers
- ◾ Competition Exemptions
- ◾ Competition Penalties
- ◾ Electronic and Traditional Tendering
- ◾ Concentration Procedures
- ◾ Evaluating Violations
- ◾ tender browsing - Etimad
- ◾ Evaluating Concentration
- ◾ Bid Evaluation in Tenders
- ◾ Modify Bid After Submission
- ◾ Pre-Qualification – Etimad
- ◾ Grievance Escalation – Etimad
- ◾ Tender Grievance – Etimad
- ◾ Finding Open Tenders
- ◾ Improving Winning Chances
- ◾ Bank Guarantees – Etimad Platform
- ◾ Participating in Government Tenders
- ◾ Purchase Tender Docs – Etimad
- ◾ Reporting Violations
- ◾ Bid Extension – Etimad
- ◾ Direct Purchase Response – Etimad
- ◾ Post-Qualification - Etimad
- ◾ Tender Inquiries – Etimad Platform
- ◾ Bid Submission – Etimad Platform
- ◾ Financial Claims – Etimad Platform
- ◾ Tender Award Results – Etimad
- ◾ Criteria for Selecting the Winning Bid
- ◾ Obtaining Government Tenders
- ◾ Withdrawing from Direct Purchase Invitation - Etimad
- ◾ Bid Withdrawal – Etimad
- ◾ Leniency & Settlement
- ◾ Objecting to Tender Results
- ◾ Common Mistakes
- ◾ Documents Required for Tenders
- ◾ Steps for Submitting an Offer in a Tender
- ◾ construction contract
- ◾ contract templates
- ◾ operations and maintenance
- ◾ supply contract
- ◾ Competition Law
- ◾ What are Tenders?
- ◾ Dominant Position
- ◾ Economic Concentration
- ◾ Etimad Platform for Government Entities
- ◾ Etimad Platform for Individuals
- ◾ Etimad Platform and Government Tenders
- ◾ Tender Collusion
- ◾ Violation Adjudication
More
What Is the Official Construction Contract in Saudi Arabia and When Should It Be Used?
A complete guide to the government-issued construction contract template used in public infrastructure projects, including key clauses and conditions.
What Are the Official Contract Templates in Saudi Arabia and When Should Each Be Used?
A detailed explanation of the official government contract templates issued in Saudi Arabia and how to use each one based on project type or procurement category.
What Is the Official Operations & Maintenance Contract in Saudi Arabia and When Should It Be Used?
A practical guide to understanding the Etimad-approved O&M contract used in government projects for facility management and preventive maintenance.
What Is the Official Supply Contract in Saudi Arabia and What Are Its Main Clauses?
A detailed overview of the official Etimad Supply Contract used in government procurement, including key clauses, use cases, and legal implications.
What are the Prohibited Practices that Violate Commercial Competition?
Learn about the list of practices and agreements prohibited by the Saudi Competition Law to ensure a fair market, including price fixing and market allocation.
What are Tenders? Definition, Importance, Types, and Stages
A comprehensive guide on tenders, explaining their definition, types, objectives, and the essential stages they go through to achieve transparency and fair competition.
What is Abuse of Dominant Position in the Market?
Learn about prohibited practices of abusing dominant position in the Saudi Competition Law, such as selling below cost and discrimination between clients.
What is Economic Concentration and When Must it be Reported?
Understand the concept of Economic Concentration (Mergers and Acquisitions) and the financial threshold (200 Million SAR) that requires reporting 90 days in advance.