The Local Content and Government Procurement Authority has made it possible for government agencies that wish to contract for one or more projects or for a specific period of time with a company that does not have a regional headquarters in the Kingdom to submit an application for an exception to the regulations on contracting with a company through the Etimad platform.
The Authority explained in a circular (the content of which was reviewed by Okaz) that exception applications will be submitted to the Exceptions Committee within a specified period in accordance with regulatory controls, prior to the commencement of competitive proposals or contract procedures, to ensure that regulatory requirements are met.
As part of a trend aimed at strengthening the presence of regional international companies in the Saudi market and increasing the level of regulatory compliance, the approved regulations stipulate that government agencies may not contract with foreign companies or related entities that do not have a regional headquarters in the Kingdom, unless they obtain an exception from the competent committee.
The authorities confirmed that making this service available through Etimad will enable government agencies to submit and follow-up applications electronically, contributing to faster investigation and decision procedures, unifying application channels, and reducing paper transactions, in addition to helping streamline government spending, strengthening local content, and creating a fair competitive environment among companies operating in the Kingdom.
The Department of Local Content and Government Procurement has made it possible for government agencies wishing to contract for one or more projects or for a specified period of time with a company that does not have a regional headquarters in the Kingdom to submit an application for exemption from contract regulations with the company through the Etimad platform.
In a circular (reviewed by “Okaz”), the authorities clarified that in order to ensure compliance with legal requirements, applications for exemption must be submitted to the Exemption Committee within a specified period according to regulatory guidelines, before the announcement of the competition or the start of the contract procedure.
The approved regulations stipulate that government agencies will not be allowed to contract with foreign companies or their affiliates that do not have a regional headquarters in the Kingdom, unless they obtain an exemption from the competent committee, as part of an approach aimed at increasing the presence of regional global companies in the Saudi market and increasing the level of regulatory compliance.
The authorities confirmed that the provision of services through Etimad will enable government agencies to electronically submit and follow-up applications, helping streamline government spending and strengthening local content, contributing to faster review and decision-making processes, unified submission channels, and reduced paperwork, in addition to creating a fair competitive environment among companies operating in the Kingdom.
