New rule: Saudi Arabia reverses restriction, allows foreign companies in government projects

Exceptions allow companies without regional HQs to bid on Saudi government projects

Last updated: February 21, 2026 | 21:31

Abdulla Rasheed, Editor - Abu Dhabi

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New rules enable exceptions for firms without regional HQs, boosting project flexibility

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Saudi Arabia has reversed its previous restriction and now permits government entities to contract with international companies and institutions that do not have a regional headquarters in the Kingdom.

The move is designed to maintain spending efficiency while ensuring timely execution of strategic projects.

Also Read: Saudi Arabia enforces new property rules for foreigners

The Local Content and Government Procurement Authority has informed relevant entities about submitting exception requests through the digital Etimad Platform.

This balances compliance with the “regional headquarters relocation” rule, introduced in early 2024, with practical project requirements demanding specialised technical expertise or financial competitiveness.

Previous restriction

Under the earlier government decision, contracting with any foreign company whose regional headquarters was outside Saudi Arabia was suspended from early 2024. The directive applied to all government entities, institutions, funds, and affiliated authorities.

Also Read: Saudi Arabia limits key roles to nationals as job title changes for expats suspended

Regulatory framework and controls

Authorities have clarified the rules for contracting with foreign companies lacking a regional HQ. Government entities can submit requests to a competent committee for exceptions on specific projects, groups of projects, or defined time periods, provided the request is made before launching a tender or direct contracting procedure.

Two circulars issued by the authority detail the submission process and the handling of contractual cases under these controls.

Etimad Platform role

The exception service is available for tenders issued through the Etimad platform, the Ministry of Finance’s official digital gateway for budget, contract, and procurement management.

Tenders launched before the rollout or outside the platform continue under previous submission mechanisms. Etimad supports transparency, efficiency, and digital transformation in government operations.

Conditions for foreign bidders

The rules do not bar foreign companies or related parties from participating in public tenders, but acceptance of bids is limited to two scenarios:

Only one technically compliant bid is submitted.
The bid is the best offer following evaluation, priced at least 25% lower than the next competitor.

Projects valued at SAR 1 million or less are exempt from these controls.

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Abdulla RasheedEditor - Abu Dhabi

Abdullah Rashid Al Hammadi  is an accomplished Emirati journalist with over 45 years of experience in both Arabic and English media. He currently serves as the Abu Dhabi Bureau Chief fo Gulf News. Al Hammadi began his career in 1980 with Al Ittihad newspaper, where he rose through the ranks to hold key editorial positions, including Head of International News, Director of the Research Center, and Acting Managing Editor. A founding member of the UAE Journalists Association and a former board member, he is also affiliated with the General Federation of Arab Journalists and the International Federation of Journalists. Al Hammadi studied Information Systems Technology at the University of Virginia and completed journalism training with Reuters in Cairo and London. During his time in Washington, D.C., he reported for Alittihad  and became a member of the National Press Club. From 2000 to 2008, he wrote the widely read Dababees column, known for its critical take on social issues. Throughout his career, Al Hammadi has conducted high-profile interviews with prominent leaders including UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, HH Sheikh Mohammed bin Rashid Al Maktoum, and key Arab figures such as the late Yasser Arafat and former presidents of Yemen and Egypt. He has reported on major historical events such as the Iran-Iraq war, the liberation of Kuwait, the fall of the Berlin Wall, and the establishment of the Palestinian Authority. His work continues to shape and influence journalism in the UAE and the wider Arab world.