Arab Press

بالشعب و للشعب
Friday, Jun 20, 2025

Saudi Arabia makes exceptions for firms dealing with companies based outside Kingdom  

Saudi Arabia makes exceptions for firms dealing with companies based outside Kingdom  

Saudi Arabia has made some exceptions for government institutions and funds seeking to deal with foreign firms that do not have a regional headquarter in the Kingdom, as its new Companies’ Law comes into force on Jan. 19, 2023.  
The exceptions are part of the new Companies’ Law which was approved by the Saudi Cabinet on June 28, 2022 and published in the official newspaper Umm Al-Qura on July 4, 2022. 

As part of the exceptions, the new law states that in the absence of any other offer that is technically acceptable, agencies, institutions, and funds can deal with foreign firms with no headquarters in the Kingdom.

In addition to this, if the offer submitted by a foreign firm with no regional headquarters in the Kingdom is the best offer — after all other offers are evaluated from a technical point of view — institutions and funds will be able to deal with them. 

It also added that the offer submitted by the company must be financially less than 25 percent or more than the value of the second-best offer. 

Moreover, works and purchases whose estimated cost does not exceed SR1 million ($266,063) or that are carried out outside the Kingdom are excluded from the restrictions.  

According to the controls set by the Kingdom, there are only two conditions under which government agencies may invite companies that are headquartered outside the Kingdom or any related party to participate in the limited competitions they offer.  

The first condition is the absence of more than one qualified competitor other than the companies with a regional headquarters in the Kingdom or related parties to carry out the business or secure the required purchases. The second condition is the existence of an emergency situation that can only be overcome or dealt with by inviting those companies that do not have a regional headquarters in the Kingdom or from the relevant parties.  

The new law – the mechanism for whose implementation was revealed by the Saudi Ministry of Commerce and the Capital Authority Market on Jan. 4 – seeks to spur the business environment and attract investment.  

Back in 2021, the Kingdom announced that it will stop signing contracts with foreign companies from 2024 unless their regional headquarters are based in the Kingdom.  

The decision aimed to incentivize foreign companies that deal with Saudi Arabia’s government to base themselves in the Kingdom. 

The decision also targeted creating jobs, increasing spending efficiency, and guaranteeing that the main goods and services purchased by government agencies are from the Kingdom. 
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
×