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- 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.

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

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Published at
2026-01-16
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