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How government buys
Government entities in the Kingdom buy under the Government Tenders and Procurement Law, and almost all of it runs through Etimad, the government procurement platform. Tenders are published there, bids are submitted there, and awards are announced there. Local content rules, overseen by the Local Content and Government Procurement Authority, give an advantage to local products and to small and medium companies.
A new law from 2027
A new Government Tenders and Procurement Law was approved in August 2026 and published in September 2026, and is expected to take effect in early 2027, replacing the 2019 law. Reported changes include a much higher limit for direct purchases, with priority for local small and medium companies, a single committee for opening and evaluating bids, a standstill period after awards, and time limits for paying suppliers. The implementing rules will settle the detail; check them before you rely on any figure.
Getting ready to bid
- A valid Commercial Registration with the right activities for what you sell.
- Registration on Etimad as a supplier.
- Current zakat or tax, GOSI and Saudization certificates; an expired one can disqualify a bid.
- Chamber of Commerce membership, and any classification or licence the sector needs.
Local content
- A 10% price preference for national products: competing foreign products are evaluated as if they cost 10% more.
- A mandatory list of national products that government entities must buy.
- A price preference for local small and medium companies.
- Local content scored in the evaluation of some tenders, under the Authority’s rules.
Bidding well
- Read the conditions booklet in full, and ask your questions within the window it sets.
- Prepare the bid guarantee in the form required.
- Check which law governs the tender: tenders launched under the old law stay under it.
- Price local content correctly; a mistake can change the ranking.
- Submit the technical and financial offers on time; late bids are not accepted.
- Plan for the final guarantee and the payment terms if you win.
How we run it
We keep our clients’ certificates and registrations current so they can bid at any time, and prepare the documents for each tender.
Sources
The official bodies and platforms this guide draws on. Rules change; check the current position there.
- Etimadetimad.sa
- Ministry of Financemof.gov.sa
- Local Content and Government Procurement Authoritylcgpa.gov.sa
General information, not legal or tax advice. Obligations depend on your company’s activity, size and registrations; check your own position or ask us.