Saudi Arabia Permits Authorities Contract Exceptions for Overseas Companies With out Regional HQ
Saudi Arabia has launched new guidelines to make its funding surroundings extra versatile whereas nonetheless defending authorities spending and nationwide objectives.
The federal government now permits exceptions that allow public entities signal contracts with worldwide corporations that shouldn’t have a regional headquarters in Saudi Arabia. These exceptions comply with strict laws to make sure spending effectivity and the well timed completion of necessary initiatives.
How the Exemption Course of Works
The Native Content material and Authorities Procurement Authority has knowledgeable all authorities entities concerning the new course of for requesting exemptions. Requests should be submitted by way of the Etimad digital platform.
For this transfer to work, two foremost objectives should be met:
➤ Following by way of on the plan to maneuver regional headquarters, which started in early 2024
➤ Assembly the precise wants of the challenge, particularly those who contain specialised technical data or very aggressive monetary provides
Background: The 2024 Headquarters Relocation Choice
Beginning in early 2024, the Saudi authorities stopped contracting with overseas corporations whose regional headquarters are situated exterior the Kingdom.
This rule applies to:
■ All authorities companies
■ Public establishments
■ Authorities funds
■ Affiliated our bodies
The choice was a part of Saudi Arabia’s technique to encourage world corporations to maneuver their regional headquarters to the Kingdom.
Regulatory Framework for Exemptions
Based on official sources, the Native Content material and Authorities Procurement Authority has issued a transparent regulatory framework for contracts involving corporations with no regional headquarters in Saudi Arabia.
Authorities entities can request exemptions for:
🔘 A particular challenge
🔘 A number of initiatives
🔘 An outlined time interval
Vital: Exemption requests should be submitted earlier than issuing a young or beginning direct contracting procedures.
The Authority launched two official circulars explaining:
• submit exemption requests
• deal with associated contractual instances
The digital exemption service formally launched on the Etimad platform in November 2025.
Who Can Use the Etimad Exemption Service?
The service is on the market to authorities entities that publish tenders by way of the Etimad platform. For:
➤ Tenders printed earlier than November 2025
➤ Tenders issued exterior the Etimad platform
The earlier submission course of will proceed to use.
What Is the Etimad Platform?
Etimad is the official digital monetary providers portal of Saudi Arabia’s Ministry of Finance. It helps digital transformation in authorities operations and improves:
✓ Funds administration
✓ Contract administration
✓ Funds
✓ Tenders
✓ Procurement processes
Etimad additionally strengthens transparency and effectivity whereas making it simpler for presidency entities to work with non-public sector corporations.
Can Overseas Corporations With out a Regional HQ Nonetheless Bid?
Sure. The laws don’t utterly forestall these corporations from collaborating in public tenders.
Nevertheless, their bids will solely be accepted in two conditions:
1. If just one technically certified bid is submitted.
2. If the corporate’s bid is the perfect after a whole technical overview and is not less than 25% decrease than the second-best bid.
Moreover, initiatives valued at SR1 million or much less are exempt from these guidelines.
Sturdy Development in Regional Headquarters Relocation
The regional headquarters of greater than 700 overseas corporations had moved to Saudi Arabia by the start of 2026. That is greater than the unique objective of getting 500 companies to maneuver there by 2030.
This necessary step helps Saudi Arabia attain its objective of turning into a serious regional enterprise hub and a spot the place proficient folks and specialists from all over the world wish to work.
Why did Saudi Arabia make this rule?
When Saudi Arabia first introduced the suspension of contracts with corporations missing regional headquarters within the Kingdom, it defined that the objective was to:
🔘 Encourage deeper integration of overseas corporations into the Saudi economic system
🔘 Create extra job alternatives for residents
🔘 Scale back financial leakage
🔘 Enhance authorities spending effectivity
🔘 Guarantee key services and products are delivered regionally with robust native content material
General, the brand new exemption system supplies flexibility whereas sustaining Saudi Arabia’s broader financial and localization objectives.
FAQ
What’s Saudi Arabia’s regional headquarters rule?
Saudi Arabia’s 2024 rule prevents authorities entities from contracting with overseas corporations that shouldn’t have a regional headquarters within the Kingdom, until an official exemption is granted.
How can corporations request an exemption?
Authorities entities should submit exemption requests by way of the Etimad digital platform earlier than issuing a young or beginning direct contracting.
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| Saudi Arabia Permits Authorities Contract Exceptions for Overseas Companies With out Regional HQ |
