The Ministry of Finance requires government agencies to sell movable assets through an approved auction
The Saudi Ministry of Finance issued a decisive decision today, mandating that all government entities in the Kingdom offer and sell government-owned assets exclusively through the "Etimad Auction" electronic service, part of the Etimad digital platform. This crucial step is part of the Ministry's comprehensive strategy to enhance transparency, improve the efficiency of government asset management, and ensure the optimal utilization of public resources.
A comprehensive digital transformation in public finance management
The ministry clarified in its official statement that this measure is not merely a procedural change, but rather an integral part of the digital transformation system it is leading to develop government financial services. The “Etimad Auction” service enables government entities to manage the entire lifecycle of selling movable assets digitally, starting from entering item data and pricing, through the stages of advertising and receiving bids from individuals and companies, to awarding the contract, issuing invoices, and making payments electronically. This puts an end to the era of traditional paper-based auctions, which were characterized by slow procedures and limited accessibility.
Enhancing competitiveness and equal opportunities
The ministry affirmed that mandating auctions through the unified platform primarily aims to ensure equal opportunities for all segments of society, whether individuals or private sector entities. Through this digital window, everyone can easily and clearly view and participate in available auctions from anywhere, thus broadening participation and fostering fair competition. This expansion of the bidder base will positively impact state revenues, as widespread competition guarantees the best prices for the assets sold.
Context of the Kingdom's Vision 2030
This decision is fully aligned with the objectives of Saudi Vision 2030, which focuses on enhancing the efficiency of government spending and developing non-oil revenues. The Etimad platform is the backbone of the Ministry of Finance's digital transformation, having contributed since its launch to unifying and streamlining government procurement and tendering procedures. By making auctions mandatory, the financial governance framework is completed, encompassing not only purchases but also sales and asset disposal, thus strengthening integrity and preventing any practices that might compromise transparency.
Expected economic impact
This decision is expected to stimulate the buying and selling of movable and surplus government assets, creating new investment opportunities for small and medium-sized enterprises (SMEs) that can benefit from these assets at competitive prices. It will also expedite the paperwork process and reduce the operational costs associated with organizing traditional auctions, ultimately benefiting the national economy as a whole.
