Saudi Arabia Lifts HQ Requirement for Foreign Firms in Government Projects

Feb 21, 2026

47 min

Feb 21, 2026 21:31

New rule: Saudi Arabia reverses restriction, allows foreign companies in government projects

## New Policy Change

Saudi Arabia has revised its regulations to allow foreign companies to participate in government projects without needing a regional headquarters in the country. This change aims to enhance project flexibility and maintain efficient spending.

## Exception Process

The Local Content and Government Procurement Authority has outlined a process for government entities to request exceptions via the Etimad Platform. This digital gateway facilitates budget, contract, and procurement management, supporting transparency and efficiency.

## Previous Restrictions

Previously, a rule enforced in early 2024 barred foreign companies without a regional HQ from government contracts. This applied to all government bodies and related institutions.

## Conditions for Bidding

Foreign companies can now submit bids under specific conditions. Their bids are considered if they are the only technically compliant offer or if they are at least 25% cheaper than the next competitor. Projects valued at SAR 1 million or less are exempt from these controls.

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