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Foreign consultancies banned from Saudi Arabia Government contracts

Royal Order calls for Saudi Arabian government departments to work exclusively with local firms, with limited exceptions

Saudi Arabia has a new law.
Saudi Arabia has a new law.

Saudi Arabia has reportedly issued a Royal Order banning the award of government contracts to foreign consultancies in the kingdom, based on a decision by General Secretariat of the Council of Ministers – following feedback from its Experts’ Committee – with exceptions to be made only in special cases or when Saudi Arabian expertise is not available to provide required services.

In line with the order, all government departments and agencies in Saudi Arabia are obliged to award contracts exclusively to experienced Saudi Arabian consultancy offices and companies.

According to local daily Saudi Gazette, the order follows a letter from the chairman of Control and Investigation Board to General Secretariat of the Cabinet.

The secretariat reportedly stated that the Experts’ Committee at the Cabinet of Saudi Arabia carried out studies with the participation of relevant authorities.

The cabinet committee endorsed these findings, recommending the restriction of consultancies to work with government departments in Saudi Arabia.

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Construction Week - Issue 749
Sep 15, 2019