RIYADH: Saudi Arabia has introduced greater flexibility into its investment environment, allowing government entities — under strict controls designed to safeguard spending efficiency and ensure the delivery of critical projects — to seek exceptions to contract with international companies that do not have regional headquarters in the Kingdom, Asharq Al-Awsat reported.
The Local Content and Government Procurement Authority has notified all government bodies of the mechanism to apply for exemptions through the Etimad digital platform.
The step is designed to balance enforcement of the “regional headquarters relocation” decision, in force since early 2024, with the needs of technically specialized projects or those driven by intense price competition.
Under a government decision that took effect at the start of 2024, state entities — including authorities, institutions, and government-affiliated funds — are barred from contracting with any foreign commercial company whose regional headquarters in the region is located outside Saudi Arabia.
According to the information, the Local Content and Government Procurement Authority informed all entities of the rules governing contracts with companies that lack a regional headquarters in the Kingdom and their related parties.
