Cabinet Approves New Government Procurement Law

Saudi Arabia's Cabinet has approved a new Government Tenders and Procurement Law that raises financial delegation limits, shortens review periods, and streamlines procedures across public bodies. The reform is designed to speed up decision-making on government contracts and support the delivery of رؤية السعودية 2030 projects.

Under the changes, the delegation threshold that allows the head of a government entity to delegate procurement decisions to another official rises from SAR 10 million to SAR 50 million. The direct purchase threshold increases tenfold, from SAR 100,000 to SAR 1,000,000, while the Ministry of Finance review period for contracts before signing is cut from up to 15 working days to up to 4 working days.

To reduce duplication, bid-opening and bid-evaluation committees are merged into a single committee, and the bid validity period is extended from 90 calendar days to 90 working days. Heads of government entities also gain wider authority to decide procurement procedures and sign contracts within the higher thresholds.

Why it matters

The updated framework continues to run through the Government Procurement Electronic Portal (Etimad) as the main official channel for public tenders, while entities executing projects outside Saudi Arabia may use alternative means to obtain competitive quotes. Projects valued at not more than SAR 1,000,000 remain exempt from regional headquarters restrictions in government tenders.

The law also requires private-sector dues to be settled within prescribed timeframes before a government entity can enter into new commitments, a step that should improve cash flow for contractors and suppliers. Amendments to the executive regulations, covering Articles 88, 111, 114 and 132, were approved by Ministerial Decision No. 1097 dated 26/05/2026 and took effect upon publication in Umm Al-Qura on 05/06/2026 (19/12/1447H). Earlier amendments under Ministry of Finance Decision 1090 took effect on 19 May 2024.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving