Saudi Arabia Approves New Government Procurement Law to Boost Transparency

 

Saudi Arabia’s new Government Tenders and Procurement Law will strengthen transparency, improve governance and promote fair competition in government contracting, Finance Minister Mohammed Al-Jadaan said.

 

In a statement following the Cabinet’s approval of the law, Al-Jadaan said the legislation would improve the planning and implementation of government procurement while providing greater clarity, fairness and equal opportunities in competition and contractual dealings.

 

He said the law builds on the Kingdom’s efforts to develop regulatory frameworks supporting the objectives of Saudi Vision 2030, including attracting investment and improving the efficiency and sustainability of public finances.

 

The new law introduces several measures aimed at streamlining procurement and accelerating decision-making. These include merging bid-opening and bid-evaluation committees into a single committee, strengthening the direct procurement method and increasing its financial threshold.

 

It also expands limited tendering to cover contracts with practitioners of liberal professions and gives heads of government entities broader powers to approve procurement procedures and sign contracts.

 

Al-Jadaan said empowering the private sector and supporting its growth were among the key objectives of the new legislation. The law requires government entities to process private-sector dues within specified timeframes before entering into new contractual commitments, helping promote timely payments and strengthen confidence in government contracting.

 

The legislation also seeks to use government procurement to support wider economic and development objectives, including research and development, innovation, industrial localisation and knowledge transfer.

 

Al-Jadaan said the law establishes a regulatory framework for research, development and innovation while strengthening provisions on industrial localisation and knowledge transfer. These measures are intended to help government entities use procurement more effectively to build national capabilities, support industrial development and facilitate the transfer of knowledge to the Kingdom.