Manny Ita –
The Saudi Arabian government has officially rolled back previous restrictions that barred international companies without regional headquarters in the Kingdom from participating in government-funded projects. The policy shift, confirmed on Saturday, February 21, 2026, is intended to “maintain spending efficiency while ensuring timely execution of strategic projects,” particularly those requiring specialized global expertise. Under the new framework, the Local Content and Government Procurement Authority has begun allowing government entities to submit exception requests via the digital Etimad Platform for firms that have not yet relocated their regional hubs to Saudi territory.
The decision marks a significant adjustment to a 2024 directive that had suspended contracting with any foreign company, institution, or fund whose regional headquarters remained outside the Kingdom. While the “regional headquarters relocation” rule remains a core strategic goal, authorities noted that the new exceptions provide a necessary “balance” between policy compliance and “practical project requirements demanding specialised technical expertise or financial competitiveness.” Government entities can now seek these exceptions for specific projects, groups of projects, or defined time periods, provided the request is filed prior to the launch of a formal tender or direct contracting procedure.
Despite the relaxation of the ban, foreign bidders without a local presence must still meet specific criteria to secure a contract. According to the regulatory controls, acceptance of such bids is limited to scenarios where “only one technically compliant bid is submitted” or if the foreign bid “is the best offer following evaluation, priced at least 25% lower than the next competitor.” Furthermore, the authorities clarified that projects valued at SAR 1 million or less are entirely exempt from these headquarters-related controls.
The Etimad Platform will serve as the primary gateway for managing these exceptions, reinforcing the Ministry of Finance’s push for “transparency, efficiency, and digital transformation in government operations.” While tenders launched before the new rollout will continue under previous submission mechanisms, this policy reversal is expected to broaden the pool of international contractors eligible for major Saudi infrastructure and development initiatives under the Kingdom’s ongoing economic transformation.
