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The Ministry of Finance released a statement in which Mohammed bin Abdullah Al-Jadaan expressed gratitude to King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman for the Cabinet’s approval of the new Government Tenders and Procurement Law. Al-Jadaan described the legislation as an important step toward strengthening governance and transparency while improving efficiency in planning and execution of government projects. The minister noted that the law promotes greater clarity, fairness and equal opportunity in competition and contractual processes, building on regulatory updates that support investment attraction and public finance sustainability.
Al-Jadaan explained that the updated rules will help government entities meet their goals and speed up project implementation through several procedural changes. The ministry’s statement listed the merger of bid-opening and bid-evaluation committees into one body, an increase in the direct procurement threshold to SAR 1 million and an expansion of limited tendering to cover contracts with liberal professions. Heads of government entities will also gain broader authority over procurement decisions and contract signing, measures the statement said will streamline operations and hasten decision-making.
Empowering the private sector stands as a central aim of the legislation, according to the Ministry of Finance statement. The new law requires that outstanding dues to private contractors be settled within set timeframes before any entity can enter fresh contractual commitments. This provision is intended to improve payment compliance and build greater confidence in government contracting arrangements, addressing a frequent concern among suppliers.
The law further incorporates mechanisms to advance economic and developmental priorities through public procurement activity. It establishes a dedicated regulatory framework for research, development and innovation while reinforcing rules on industrial localization and knowledge transfer. Government entities will be able to apply these tools more effectively to support capability building and bring advanced expertise into the Kingdom, the ministry statement indicated.
Annual government procurement volumes are projected to stay above SAR 400 billion through 2030 as mega-projects continue, according to sector assessments from Vision 2030 implementation monitors. Local content in government contracts surpassed 51 percent in 2025, a milestone that reflects the work of the Local Content and Government Procurement Authority established to drive Vision 2030 targets. The new law aligns with that authority’s mandate by embedding localization, innovation and knowledge-sharing requirements directly into tender processes.
Previous iterations of the Government Tenders and Procurement Law, including the 2019 version and its subsequent amendments, laid groundwork for these latest refinements. The Ministry of Finance has issued multiple executive regulations since 2019 to fine-tune contracting procedures and align them with national transformation goals. Al-Jadaan concluded his statement by reiterating appreciation for leadership directives that have reinforced economic resilience and supported development across multiple sectors.
