• The terms and phrases mentioned below - wherever they appear in these regulations - shall have the meanings specified next to each of them, unless the context requires otherwise:

  • Regulations: Regulations governing the contracting of government agencies with companies that do not have a regional headquarters in the Kingdom and related parties.

  • Authority: Local Content and Government Procurement Authority.

  • President: Chairman of the Board of Directors of the Authority.

  • Committee: Committee for exemption from the regulations, established under Article (9) of the regulations.

  • Region: The Middle East and North Africa.

  • Companies that do not have a regional headquarters in the Kingdom: Foreign companies that do not have a regional headquarters in the Kingdom, have a regional headquarters in the region, and are listed in the list referred to in Article (5) of the regulations.

  • Related party: Any agent for companies that do not have a regional headquarters in the Kingdom or any distributor, supplier, or provider of their goods or services concerning those goods and services.

  • Government agencies: Ministries, government bodies, authorities, interests, centers, public institutions, and other independent entities with public legal personality, and for the purpose of applying the provisions of the regulations, non-profit institutions established by the government or one of its agencies are considered equivalent to a government agency.

  • Emergency situation: A situation in which there is a serious and unexpected threat to public safety, public security, or public health, or in which there is a disruption that threatens loss of life or property.

  • Portal: The unified electronic portal for government procurement subject to the supervision of the Ministry of Finance.

The regulations aim to organize the contracting of government entities with companies that do not have a regional office in the Kingdom, or with any related party.

Government entities are not permitted, when carrying out their operations and securing their purchases, to contract with companies that do not have a regional office in the Kingdom or any related party except in accordance with the provisions of the regulations. All government entities are obligated to apply the regulations, whether they are subject to the provisions of the Government Tenders and Procurement Law or any other systems or regulations, and the regulations are considered complementary to the provisions applied by government entities when carrying out their operations and securing their purchases. 

• The following works and purchases are exempt from the regulations: 

  • A- Those whose estimated cost does not exceed (one million) Riyals. The Minister of Finance may, in accordance with the requirements of the public interest, issue a decision to amend this amount, cancel this exemption, or temporarily suspend its implementation.  

  • B- Those executed outside the Kingdom. 

The Ministry of Investment, in coordination with the Ministry of Finance, the Saudi General Authority of Foreign Trade, and the General Panel, prepares a list of companies that do not have a regional headquarters in the Kingdom, based on criteria and regulations agreed upon by these entities. The list is updated every quarter - or as needed - and is circulated to government entities. 

• Without prejudice to the provisions of the regulatory rules applied by government entities when executing their work and securing their purchases, government entities may not invite companies that do not have a regional office in the Kingdom or any related party to participate in limited competitions or for direct contracting except in one of the following two cases: 

  • A- There is no more than one qualified competitor other than companies that do not have a regional office in the Kingdom or related parties, or the works or purchases are exclusively available to them to execute the required works or secure the purchases. 

  • B- There is an emergency situation that can only be addressed through an invitation or direct contracting with companies that do not have a regional office in the Kingdom or related parties. 

Government entities that contract with any company that does not have a regional headquarters in the Kingdom or a related party - in accordance with the regulations - are obligated to prepare a report that includes the reasons that led them to contract, and to provide the Higher Committee for the Saudi Program to Attract Regional Headquarters of Global Companies, as well as the General Secretariat of the Committee, with a copy of it, within a period not exceeding (thirty) working days from the date of signing the contract. 

• 1 - A committee called the (Committee for Exemption from the Regulations of Government Entities Contracting with Companies that Do Not Have a Regional Headquarters in the Kingdom and Related Parties) shall be formed in accordance with the regulations, and it shall be affiliated with the authority. 

• 2- The committee shall be chaired by a representative from the authority, and its membership shall include:

  • A- A representative from the Ministry of Investment. 

  • B- A representative from the Ministry of Finance. 

  • C- A representative from the Expenditure and Projects Efficiency Authority. 

  • D- A representative from the Saudi General Authority of Foreign Trade. 

  • E- A representative from the Saudi Program for Attracting Regional Headquarters of Global Companies. 

  • F- A representative from the Localization and Balance of Payments Committee. 

  • G- No more than (three) members with expertise and specialization, appointed by a decision from the president in agreement with the Minister of Investment. 

• 3- The rank of representatives from government entities must not be less than (fourteenth) or its equivalent. 

• 4- The committee shall elect from its members a representative of government entities as the vice-chairman. 

The Committee is responsible for reviewing requests from government entities to exempt companies that do not have a regional headquarters in the Kingdom and related parties from the regulations, and for making decisions regarding these requests.