Saudi Arabia Approves New Procurement Law
The Saudi Government recently approved a new law aimed at streamlining procurement contracts and services, while also saving money, making the process fairer, and boosting local bidders. This is the latest regulatory reform taken on by the Finance Ministry to help achieve Vision 2030.
The law is not only expected to improve transparency, but also improve the government’s fiscal position by maximizing costs and improving efficiency of financial planning going forward. The new law also improves the flexibility in the price of contracts and compensation in the case of increased raw material prices, custom duties and taxes.
The change is further expected to encourage wider participation of small and medium enterprises (SMEs) by giving them priority over larger competitors and increasing the ease of entry. SMEs have an important role to play in diversifying Saudi’s economy, an important element of Vision 2030. To learn more of SMEs and Saudi Arabia’s plans, take a look at our publications tab.
A report on SME development in the Kingdom can be found here.