Saudi Arabia Lifts Restriction on Foreign Firms in Government Projects

Feb 21, 2026

46 min

Feb 21, 2026 18:30

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

## New Policy Overview

Saudi Arabia has revised its policy to allow foreign companies to participate in government projects without needing a regional headquarters in the Kingdom. This change aims to enhance project flexibility and ensure efficient spending.

## Submission Process

The Local Content and Government Procurement Authority has outlined a process for government entities to request exceptions via the Etimad Platform. This digital gateway facilitates budget, contract, and procurement management, supporting transparency and efficiency.

## Previous Restrictions

Previously, a rule enforced in early 2024 barred foreign firms without regional HQs from government contracts. This applied to all government bodies and related authorities.

## Conditions for Bidding

Foreign companies can now bid on public tenders under specific conditions. Bids are accepted if they are the only technically compliant offer or if they are at least 25% cheaper than the next competitor. Projects under SAR 1 million are exempt from these rules.

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