Saudi Arabia has lifted previous restrictions, allowing Saudi Arabian foreign projects to participate in government contracts under controlled conditions. Authorities now permit exceptions for projects requiring specialized expertise or competitive pricing. This decision ensures high-quality projects can continue efficiently while meeting compliance requirements for local headquarters.
Previously, contracting with foreign companies without a regional headquarters in Saudi Arabia was suspended. The rule applies to all government entities, institutions, and affiliated authorities. This restriction affected projects requiring technical know-how or financial competitiveness. By reversing the rule, authorities now support the smooth execution of Saudi Arabia’s foreign projects.
The Local Content and Government Procurement Authority clarified how to submit exception requests. Government entities must file requests before launching a tender or direct contracting process. Requests can cover individual projects, groups of projects, or specific periods. Circulars detail the submission process and management of contracts under these rules.
The Etimad Platform plays a central role in handling exceptions. It serves as the Ministry of Finance’s official digital gateway for budgets, contracts, and procurement. Requests submitted through Etimad benefit from transparency, efficiency, and digital oversight. Tenders launched before the platform rollout or outside Etimad follow the previous procedures.
Authorities also set clear conditions for foreign bidders. Approval applies only when one technically compliant bid exists or when a bid is at least 25% lower than the next competitor. Projects valued at SAR 1 million or less are exempt. These rules protect fair competition while enabling high-quality Saudi Arabia foreign projects to participate.
Furthermore, this policy allows Saudi Arabia to attract global expertise and investment. Government projects can now access both technical and financial advantages. Authorities stress that transparency and compliance remain key priorities. At the same time, foreign companies gain opportunities to contribute to vital national projects.
Overall, Saudi Arabia’s new rules balance local content requirements with practical project needs. Government entities can complete projects efficiently while ensuring fair competition. The Etimad Platform guarantees transparency, and foreign companies now have a clear path to participate. High-quality Saudi Arabia foreign projects will continue to support economic growth and government development initiatives.
