Are government agencies allowed to contract with companies that do not have a regional headquarters in the Kingdom?

Al-Marsad Newspaper: The Official Gazette, Umm Al-Qura, published the regulations for regulating the contracting of government agencies with companies that do not have a regional headquarters in the Kingdom or with any related party.

The controls included: It is not permissible for government agencies – when carrying out their work and securing their purchases – to contract with companies that do not have a regional headquarters in the Kingdom or any related party except in accordance with the provisions of the controls. All government agencies are obligated to implement the controls, whether they are subject to the provisions of the Government Tenders and Procurement Law or to any other laws or regulations, and the controls are complementary to the provisions applied by government agencies when carrying out their work and securing their purchases in accordance with the text of Article Three.

The following business and purchases are excluded from the controls:

A- The estimated cost of which does not exceed (one million) riyals. The Minister may, in accordance with the requirements of the public interest, issue a decision to amend this amount, cancel this exception, or suspend its work temporarily.

B- That which is implemented outside the Kingdom.

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