Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Saudi Arabia gives government agencies limited options to contract with foreign firms

Saudi Arabia gives government agencies limited options to contract with foreign firms

Saudi Arabia will prepare a list of companies that do not have regional headquarters in the Kingdom, according to information revealed by the official Umm Al-Qura newspaper.
Some specific rules and circumstances allow Saudi government agencies to conclude contracts with companies that do not have regional headquarters in the Kingdom.

However, as per the Umm Al-Qura notification, it is not permissible for government agencies, when executing work and securing purchase orders, to contract with companies that do not have regional headquarters in the Kingdom.

The Ministry of Investment, in coordination with the Ministry of Commerce and the General Authority for Foreign Trade, will prepare a list of companies that do not have regional headquarters in the Kingdom. The list, which is based on standards and regulations that are agreed upon, will be updated periodically or as often as needed.

Article Six of the regulations states that it does not prevent companies that do not have regional headquarters in the Kingdom or any related party from submitting offers for public biddings by any of these agencies, provided that these entities do not accept the submissions of these companies or related parties except on two occasions:

The first is when there is only one technically acceptable offer, and the second is when the offer submitted by the company, which does not have a regional headquarters in the Kingdom or the related party, submitted the best offer after the overall evaluation from a technical point of view and is financially 25 percent more or less than the value of the second best offer.

Article Seven of the regulations stipulates that government agencies may not invite companies that do not have regional headquarters in the Kingdom or any related party to participate in the limited biddings they offer except in one of two circumstances:

These are when there is no more than one qualified bidder other than companies that do not have a regional headquarters in the Kingdom to carry out businesses or secure the required purchases, or in the event of an emergency situation that can only be dealt with by companies that do not have regional headquarters in the Kingdom.

The articles oblige government agencies that contract with any company that does not have regional headquarters in the Kingdom or a related party to prepare a report that includes the reasons that prompted them to conclude such a contract. A copy of this contract will be supplied to the General Auditing Bureau and the Expenditure and the Project Efficiency Authority within a period not exceeding 30 working days effective from the date of signing the contract.

In 2021, Saudi Arabia announced that it intends to cease contracting with companies and commercial institutions that have regional headquarters outside the Kingdom starting from Jan. 1, 2024.

The decision aims to incentivize the localization of businesses by foreign companies that deal with the Kingdom’s government or any of its agencies, institutions, and funds, in addition to creating more jobs, limiting economic drain, increasing spending efficiency, and guaranteeing that the main goods and services purchased by different government agencies are made in the Kingdom with appropriate local content.

Since then, multinational companies signing deals to establish headquarters in Riyadh gained big momentum. Among confirmed companies that moved to the Kingdom are multinationals such as Unilever, Baker Hughes and Siemens. They operate in sectors including technology, food and beverages, consulting and construction.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Saudi Arabia Faces Uncertainty Over Succession After Mohammed bin Salman
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Majority of French Voters View Macron's Presidency as a Failure
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Businessman Mauled by Lion at Luxury Namibian Lodge
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
×