Saudi Arabia has recently been recognized for its exceptional performance in the field of competition law systems. The United Nations Economic and Social Commission for Western Asia (ESCWA) has awarded the country the highest evaluation of “Very Strong” in its 2023 Competition Law Systems Report. This impressive rating signifies a significant improvement from the “Strong” rating Saudi Arabia received in both 2017 and 2020, highlighting the country’s remarkable progress in enhancing its competition policy frameworks and cracking down on unfair market practices. Saad Al Masoud, the official spokesperson for the General Authority for Competition, attributes this achievement to the substantial support provided by the government to the authority, aligning with the goals of Saudi Arabia’s Vision 2030 to boost economic growth and consumer welfare.
Al Masoud further elaborated that the advancements recognized in the report have been the result of major developments in various areas, including legislation against monopolistic behaviors and anti-competitive agreements, as well as improvements in processes for reviewing economic concentrations. ESCWA noted that Saudi Arabia has made significant strides in implementing competition policy between 2019 and 2022, following legislative amendments and the introduction of guidelines aimed at clarifying the legal and economic aspects of competition. The implementation of these policies has produced tangible results since 2021, improving the business environment within the country. The report emphasized the critical role of legislative frameworks in preventing anti-competitive practices such as abuse of dominance, stating that these measures are crucial in encouraging companies to enhance product quality, reduce prices, and promote innovation.
The evaluation methodology used in the report assesses eight main components including international trade agreements, regulatory frameworks for merger transactions, competition laws, anti-hegemony and anti-monopoly laws, enforcement practices, worker protection, market liberalization, and interventions related to competition and disruptive arrangements. The recognition of Saudi Arabia’s competition law systems as “Very Strong” showcases the country’s commitment to fostering a fair and competitive market environment, which is essential for economic growth and ensuring consumer welfare. This evaluation also highlights the importance of continuous improvements in legislation and enforcement practices to combat unfair market practices and promote a level playing field for businesses.
Saudi Arabia’s achievement in receiving the highest evaluation in the ESCWA 2023 Competition Law Systems Report reflects the country’s dedication to strengthening its competition policy frameworks and enforcing regulations against unfair market practices. The government’s support to the General Authority for Competition has played a significant role in this success, aligning with the objectives of Saudi Arabia’s Vision 2030 to boost economic growth and improve consumer welfare. Major developments in legislation against monopolistic behaviors, anti-competitive agreements, and processes for reviewing economic concentrations have contributed to Saudi Arabia’s notable progress in implementing competition policy, resulting in tangible outcomes that enhance the business environment within the country.
The ESCWA report emphasizes the crucial role of legislative frameworks in preventing anti-competitive practices and encouraging companies to enhance product quality, reduce prices, and foster innovation. The recognition of Saudi Arabia’s competition law systems as “Very Strong” underscores the country’s commitment to creating a fair and competitive market environment essential for economic growth and consumer welfare. By implementing policies and guidelines aimed at clarifying legal and economic aspects of competition, Saudi Arabia has demonstrated its dedication to improving its competition policy frameworks and enforcement practices to combat unfair market practices effectively. Through continuous improvements and enhancements, Saudi Arabia aims to create a level playing field for businesses and promote a thriving and competitive market environment.
In conclusion, Saudi Arabia’s recognition as having “Very Strong” competition law systems by the ESCWA is a testament to the country’s unwavering commitment to fostering a fair and competitive market environment. This achievement reflects the significant progress made in implementing competition policy frameworks, enhancing enforcement practices, and cracking down on unfair market practices. Saudi Arabia’s dedication to continuous improvement in legislation and enforcement is crucial in promoting economic growth, enhancing consumer welfare, and creating a level playing field for businesses in the country. This recognition by ESCWA underscores the importance of effective competition policies and regulations in driving innovation, improving product quality, and fostering a dynamic and competitive business environment.
