The following words and phrases, used herein, shall have the meanings assigned thereto, unless the context requires otherwise:
Controls: Controls for the Contracting of Government Entities with Companies Having no Regional Headquarters in the Kingdom and with Related Parties.
Ministry: Ministry of Finance.
Minister: Minister of Finance.
Committee: The committee formed pursuant to Article 10 herein for the exemption from the Controls.
Chairman: Chairman of the Committee.
MENA: Middle East and North Africa.
Companies Having no Regional Headquarters in the Kingdom: Foreign companies which do not have regional headquarters in the Kingdom but have regional headquarters in the MENA region and which are included in the list referred to in Article 5 herein.
Related Party: Any agent of a company having no regional headquarters in the Kingdom, or any distributor, supplier, or provider of the goods or services of such company, insofar as such goods or services are concerned.
Government Entities: Ministries; government agencies; public departments, authorities, and institutions; and independent bodies with public legal personality.
Emergency: A state where a threat to public safety, security, or health is serious and unforeseen, or which involves a disruption that may result in the loss of life or property.
Portal: The unified electronic portal for government procurements overseen by the Ministry

The Controls aim to regulate the contracting of government entities with companies having no regional headquarters in the Kingdom or with any related party

Government entities may not, when carrying out their works and securing their purchases, contract with companies having no regional headquarters in the Kingdom or with any related party except in accordance with the Controls.
Government entities shall comply with the Controls whether such entities are subject to the Government Tenders and Procurement Law or any other laws or regulations. The Controls shall be deemed complementary to the provisions
governing the works and procurements of government entities.

The following works and purchases shall be exempt from the Controls:
a) Works and purchases the estimated cost of which does not exceed one million riyals. The Minister may, as dictated by public interest, issue a decision to amend said amount or to cancel or temporarily suspend the exemption.
b) Works and purchases carried out outside the Kingdom.

The Ministry of Investment shall, in coordination with the Ministry and the General Authority of Foreign Trade and based on the criteria and controls on which they agree, prepare a list of the companies having no regional headquarters in the Kingdom. Such list shall be updated periodically, or as needed, and shall be published on the Portal.

Without prejudice to the statutory provisions with which government entities must comply when carrying out their works and securing their purchases, government entities may not invite companies having no regional headquarters in the Kingdom or any related party to submit proposals in limited tenders offered by such entities, except in either of the following cases:
a) The absence of more than one qualified bidder from companies other than the companies having no regional headquarters in the Kingdom or related parties to carry out and secure required works and purchases.
b) A state of emergency which can only be addressed by inviting companies having no regional headquarters in the Kingdom or related parties to submit proposal

Without prejudice to the statutory provisions with which government entities must comply when carrying out their works and securing their purchases, government entities may not directly contract with companies having no regional headquarters in the Kingdom or with any related party, except in either of the following cases:
a) The works or procurements are only provided by a company having no regional headquarters in the Kingdom or by a related party.
b) A state of emergency which can only be addressed by directly contracting with a company having no regional headquarters in the Kingdom or with a related party.

Government entities that contract with a company having no regional headquarters in the Kingdom or with a related party in accordance with the Controls shall prepare a report which includes its reasons for contracting with such company or party and shall provide the General Court of Audit and the Expenditure and Projects Efficiency Authority with a copy thereof, within a period not exceeding 30 business days from the date of signing the contract.

1. A committee named the Committee for the Exemption from the Controls Governing the Contracting of Government Entities with Companies Having no Regional Headquarters in the Kingdom and with Related Parties shall be formed pursuant to the Controls; said Committee shall report to the Ministry.
2. The Committee shall comprise a representative of the Ministry as chairman and the following members:
a) A representative of the Ministry of Investment.
b) A representative of the Local Content and Government Procurement Authority.
c) A representative of the Expenditure and Projects Efficiency Authority.
d) A representative of the Localization and Balance of Payments Committee.
e) Not more than three qualified members with relevant expertise who shall be appointed pursuant to a decision by the Minister in agreement with the Minister of Investment.
3. The representatives of government entities shall be of a rank not lower than grade “Fourteen” or its equivalent.
4. The Committee shall appoint the vice-chairman from among the members who are representatives of government entities.