Saudi Minister of Finance Thanks Leadership for Cabinet Approval of the New Government Tenders and Procurement
His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan, expressed his gratitude and appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, on the occasion of the Council of Ministers’ approval of the new Government Tenders and Procurement Law.
He highlighted that the new Law represents an important step in advancing government tenders and procurement by strengthening governance and transparency, improving the efficiency of planning and implementation, and promoting greater clarity, fairness, and equal opportunity in competition and contractual dealings. He noted that the Law builds on the Kingdom’s ongoing efforts to develop regulatory frameworks that support the objectives of Saudi Vision 2030 including promoting investment and improving the efficiency and sustainability of public finance.
His Excellency explained that the new Law enables government entities to achieve their objectives and accelerate the implementation of their projects and activities effectively and efficiently. Key provisions supporting this include merging the bid-opening and bid-evaluation committees into a single committee, enhancing the direct procurement method and increasing its financial threshold to SAR 1 million, developing limited tendering to include contracting with practitioners of liberal professions, and expanding the authorities of heads of government entities, both in deciding on procurement procedures and in signing contracts, thereby contributing to streamlined processes and faster decision-making.
His Excellency also noted that empowering the private sector and supporting its growth are among the key objectives of the new Law. Accordingly, the new Law requires private sector dues to be processed within the prescribed timeframes before a government entity may enter into new contractual commitments. This, in turn, will enhance compliance with the timely payment of such dues, and strengthen confidence in government contracting.
He further explained that the Law supports the use of government tenders and procurement to advance a number of economic and development objectives by strengthening the regulatory frameworks that support research, development and innovation, as well as industrial localization and knowledge transfer. In this context, the Law provides for the establishment of a regulatory framework to support research, development and innovation, and further strengthens the regulation of industrial localization and knowledge transfer, enabling government entities to make effective use of these tools while supporting industrial localization, capability building, and the transfer of knowledge to the Kingdom.
In concluding his statement, he expressed his deep gratitude to the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince and Prime Minister for their continued support of the fiscal policy and for their directives, which have contributed to strengthening the resilience of the national economy and advancing the Kingdom’s comprehensive development across various sectors.
