RIYADH — Saudi Arabia has taken a brand new step towards enhancing the pliability of its funding atmosphere by allowing exceptions that permit authorities entities to contract with worldwide firms missing a regional headquarters within the Kingdom. These exemptions are ruled by particular rules designed to protect spending effectivity and make sure the well timed execution of strategic initiatives.
The Native Content material and Authorities Procurement Authority has notified all related entities of the mechanism for submitting exemption requests by means of the “Etimad” digital platform. This measure seeks to strike a steadiness between adherence to the “Relocation of Headquarters” choice that got here into impact from the start of 2024, and the sensible necessities of initiatives involving extremely specialised technical experience or sturdy monetary competitiveness.
Below the federal government’s earlier choice, contracting with any overseas firm or business institution whose regional headquarters is situated outdoors the Kingdom was suspended as of early 2024. This directive applies to all authorities companies, establishments, funds, and their affiliated our bodies.
In keeping with dependable sources, the Native Content material and Authorities Procurement Authority has formally communicated the regulatory framework governing authorities contracts with firms that don’t keep a regional headquarters within the Kingdom, in addition to with associated events. The rules allow authorities entities to submit a request to the designated committee searching for an exemption for a selected challenge, a bunch of initiatives, or an outlined interval. Such requests should be filed previous to issuing a young or initiating direct contracting procedures.
The authority has issued two circulars outlining the procedures for submitting exemption requests and addressing contractual circumstances in accordance with the rules. It confirmed that the digital service for submitting such requests was launched by way of the “Etimad” platform in November 2025.
The service is obtainable to authorities entities that publish their tenders by means of the “Etimad” platform. Requests for exemptions regarding tenders revealed previous to the launch of the service, in addition to tenders issued outdoors the platform, will proceed to observe the beforehand established submission mechanism.
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The “Etimad” platform serves because the official digital portal for monetary providers supplied by the Ministry of Finance. It’s meant to advance the digital transformation of presidency operations whereas enhancing transparency and effectivity within the administration of budgets, contracts, funds, tenders, and procurement processes. In doing so, it facilitates seamless interplay between authorities entities and the personal sector.
When issuing the rules governing authorities contracts with firms missing a regional headquarters within the Kingdom, the Saudi authorities clarified that such guidelines don’t preclude these firms or any associated events from taking part in public tenders. Nevertheless, their bids shall be accepted solely underneath two circumstances: if no a couple of technically compliant bid is submitted, or if the bid, following a complete technical analysis, is deemed probably the most advantageous and is no less than 25 p.c decrease than the second-best provide. The rules additional exempt initiatives with an estimated worth not exceeding SR1 million.
It’s noteworthy that the variety of worldwide firms which have relocated their regional headquarters to Saudi Arabia surpassed 700 by early 2026, exceeding the unique goal of attracting 500 firms by 2030. This milestone underscores the Kingdom’s ambition to place itself as a number one regional enterprise hub and a magnet for world experience.
When Saudi Arabia introduced its choice to droop contracting with firms missing a regional headquarters inside the Kingdom, it emphasised that the measure was designed to foster deeper integration of overseas firms and establishments engaged with the Saudi authorities, its companies, and affiliated funds and entities.
The coverage seeks to generate employment alternatives, curb financial leakage, improve spending effectivity, and make sure that important services and products procured by authorities our bodies are delivered domestically with acceptable native content material.
