To sell to Saudi government entities, you need to be registered on Etimad, the government's single procurement portal. Foreign multinationals generally also need a regional headquarters (RHQ) in the Kingdom. From 1 April 2027, your local content score will directly affect how larger consulting and IT bids are scored. And a new Government Tenders and Procurement Law, expected to take effect in early 2027, raises the limit for buying directly without a tender from SAR 100,000 to SAR 1 million.

Government and government-linked entities are the biggest buyers in the Saudi economy. Tenders worth SAR 336.3 billion were launched on Etimad in 2024 alone. But the rules for who can win that work have changed fast. This guide explains the current rules, what changes in 2027, and what B2B companies should do now, including the part most guides skip: how buyers find and trust you before a tender is ever issued.

What's changing: the timeline

  • 1 January 2024: government entities generally stop contracting with foreign companies that don't have a regional headquarters in Saudi Arabia.
  • February 2026: the Local Content and Government Procurement Authority (LCGPA) formalises how government entities can request exemptions from the RHQ rule through Etimad.
  • August 2026: the Council of Ministers approves a new Government Tenders and Procurement Law. It enters into force 120 days after publication in the Official Gazette, which is expected around early January 2027.
  • 1 April 2027: local content starts counting in the financial evaluation of government management consulting and IT services tenders worth SAR 10 million or more.
  • 1 January 2028: the local content minimum for management consulting tenders extends to tenders worth SAR 5 million or more.

Etimad: the front door

Government tenders are run through Etimad, the unified electronic procurement portal. If you aren't registered and active there, you won't see most opportunities. Registration typically requires:

  • A Saudi commercial registration and Chamber of Commerce membership
  • Valid Zakat, VAT and GOSI (social insurance) certificates
  • A local bank account
  • For foreign-owned companies, an investment licence from the Ministry of Investment (MISA)

Keep these certificates current. An expired certificate on the day of a bid is one of the most common and avoidable reasons for disqualification.

The regional headquarters (RHQ) rule

Since 1 January 2024, government entities, including authorities, institutions and government-affiliated funds, have generally been barred from contracting with foreign companies that don't have a regional headquarters in the Kingdom. Those companies can still bid. The restriction is on awarding the contract.

There are exceptions. A government entity can accept an offer from a company without an RHQ if:

  • there is no more than one technically compliant bid; or
  • the offer ranks among the best technically and is at least 25% cheaper than the second-best bid after overall evaluation; or
  • the contract's estimated value is SAR 1 million or less, which is exempt.

The government entity, not the supplier, applies for an exemption through Etimad, and it must do so before launching the tender or direct contracting. Exemptions can cover a single project, several projects or a set period. For larger, recurring government work, the practical answer is usually an RHQ licence, not repeated exemptions.

Local content: now part of the score

Local content means how much of your spending stays in the Kingdom, for example Saudi salaries, locally sourced goods and services, and training. The share of government procurement subject to local content mechanisms has risen from 28% in 2018 to more than half. The mechanisms the LCGPA uses include price preferences for national products and mandatory lists of national products for certain items.

The next step is aimed directly at service firms. From 1 April 2027:

  • Management consulting tenders of SAR 10 million or more: local content is weighted in the financial evaluation, and bidders need a company-level local content certificate showing at least 30%. Bids below that are excluded. From 1 January 2028, this extends to tenders of SAR 5 million or more.
  • IT services tenders of SAR 10 million or more: local content is weighted in the financial evaluation. There's no company-level minimum, but you still need to submit a company-level local content certificate with your technical proposal.

Your company-level score comes from your LCGPA local content certificate. Building it takes time, because hiring Saudi talent, sourcing locally and investing in training all move the number. That links directly to the 60% Saudization rule in marketing and sales.

The new Government Tenders and Procurement Law

The new law replaces many of the more prescriptive features of the 2019 law. The changes most relevant to suppliers:

  • Direct purchase up to SAR 1 million, up from SAR 100,000. More contracts can be awarded without a public tender.
  • Contract variations up to 20% of the contract value, up from 10%.
  • One committee now opens and evaluates bids, where there used to be two.
  • A higher procurement delegation limit inside entities, reported as rising from SAR 10 million to SAR 50 million.

The implementing regulations will settle many details. Tenders already issued under the 2019 law are generally expected to continue under it, but check each tender's documents.

If you're a Saudi SME

Saudi procurement gives priority to local small and medium-sized enterprises. Under the current law, local SMEs don't have to submit an initial bid bond, which removes a real cash barrier, and the regulations give SMEs price preferences in some contract types. Make sure your SME status is registered so the preferences apply to you.

Where marketing fits in government sales

Most tender guides stop at compliance. In our experience, government deals are often shaped long before the tender is published, and the new law makes that more true:

  • Direct purchase up to SAR 1 million means being known matters more. When an entity can buy directly, it buys from suppliers it already knows and trusts.
  • Due diligence happens online, in Arabic. Procurement teams, increasingly Saudi nationals, will check your website, your case studies and your local presence. An English-only site with no Saudi references is a weak start.
  • A capability statement wins pre-qualification. A clear, bilingual one-to-two page summary of what you do, who you've done it for, and your Saudi presence and local content story.
  • Your local content is a story as well as a score. Saudi team members, local partners and training programmes belong on your website and in your proposals, not only on your certificate.
  • Thought leadership opens doors. Useful insight on the sector's priorities under Vision 2030, published in Arabic and English, gets you invited into conversations before requirements are written.

A practical checklist

  1. Register on Etimad and keep all certificates current.
  2. If you're a foreign multinational targeting large or recurring government work, assess an RHQ licence with your advisers.
  3. Get your LCGPA local content certificate and plan how to raise your score before April 2027.
  4. If you're a Saudi SME, make sure your SME status is registered.
  5. Build a bilingual capability statement and Arabic case studies.
  6. Make sure your website passes procurement due diligence: Saudi presence, references and a team buyers can meet.
  7. Track the implementing regulations of the new procurement law as they're published.

Not sure where to focus first? Our free Growth Opportunity Assessment is a 12-point check that shows where your biggest untapped growth is.

Frequently asked questions

Can a foreign company bid on Saudi government tenders without a regional headquarters?
It can bid, but since 1 January 2024 government entities generally can't award it the contract. The exceptions are when there's no more than one technically compliant bid, when the offer is among the best technically and at least 25% cheaper than the second-best, or when the contract is worth SAR 1 million or less. The government entity requests the exemption through Etimad before launching the tender.

What is Etimad?
Etimad is the Saudi government's unified electronic platform for procurement. Government tenders are published and submitted through it, so suppliers need to be registered there to take part.

What changes for consulting and IT tenders in April 2027?
From 1 April 2027, local content is weighted in the financial evaluation of government management consulting and IT services tenders worth SAR 10 million or more. Management consulting bidders also need a company-level local content certificate of at least 30%, a minimum that extends to tenders of SAR 5 million or more from 1 January 2028.

When does the new Government Tenders and Procurement Law take effect?
It was approved by the Council of Ministers in August 2026 and comes into force 120 days after its publication in the Official Gazette, which is expected around early January 2027. Check the Ministry of Finance or Etimad for the confirmed date.

What is the direct purchase limit under the new law?
The new law raises the ceiling for direct purchase from SAR 100,000 to SAR 1 million, so more contracts can be awarded without a public tender.

Do Saudi SMEs need a bid bond?
Under the current procurement law, local small and medium-sized enterprises don't have to submit an initial bid bond. Check the specific tender documents, as requirements can vary.

This article summarises public announcements and legal commentary as of 27 October 2026. It isn't legal advice. Procurement rules and implementing regulations are still being published, so check Etimad, the Local Content and Government Procurement Authority and the specific tender documents, or speak to a procurement lawyer.