Rules and Regulations of Business Partnerships Between Private and Public Sectors: A Comparative Analysis of the Saudi and Kuwaiti Systems

الملخص

Business partnerships between the private and public sectors in Kuwait and Saudi Arabia are increasingly used to promote sustainable economic development but face complex legal and procedural challenges. A central issue concerns the administrative authority’s power to substitute the private investor during project implementation, particularly when unforeseen legal or natural events hinder contractual performance. This intervention, intended to protect public facilities, often generates conflict between the rights of investors and the public interest. This study analyses the legal basis, scope, and limitations of such substitution powers through legislative texts and judicial rulings in both countries. It identifies key differences in investor protections and public authority privileges and explores the implications for contractual stability and efficiency. The research concludes with recommendations, including the introduction of specific legislation to govern public-private partnerships, clearer substitution procedures, and explicit standards for negligence and gross error that justify the replacement of an investor.