‎What you need to know about gov’t tenders & procurement law

‎<p><img src="https://argaamplus.s3.amazonaws.com/8e7292f4-0e8a-4791-9b85-564c979cbe52.png" ></p> <hr> <p ><span ><span >Saudi Arabia has issued a new Government Tenders and Procurement Law, which will take effect 120 days after its publication in the Official Gazette and apply to all government procurement and projects.</span></span></p> <p ></p> <p ><span ><span >The new legislation replaces the existing Government Tenders and Procurement Law issued under Royal Decree No. M/128 dated 13/11/1440H and repeal conflicting provisions.</span></span></p> <p ></p> <p ><span ><span >The law aims to improve value for public spending, strengthen transparency and competition, protect public funds and support economic development. Government contracts should be awarded at fair and competitive prices, taking into account lifecycle costs, execution quality, operational efficiency and risk management.</span></span></p> <p ></p> <p ><span ><span >The framework requires equal treatment of qualified bidders and clear access to tender information, while public tenders will be subject to transparency and equal-opportunity principles. Government entities must also limit procurement and contracting to their actual requirements and at fair prices.</span></span></p> <p ></p> <p ><span ><span >Government entities should generally deal with licensed suppliers and contractors. When engaging overseas providers for work or procurement within Saudi Arabia, they must first ensure that there is no more than one qualified licensed local provider capable of meeting the requirement.</span></span></p> <p ></p> <p ><span ><span >The law gives preference to local SMEs, local content and companies listed on the Saudi stock market, with the implementing regulations to set out the relevant mechanisms.</span></span></p>

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Argaam - Main News · Trade Publication

Published

5th September 2026

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argaam.com

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