Saudi Arabia has taken a new step toward enhancing the flexibility of its investment environment by permitting exceptions that allow government entities to contract with international companies lacking a regional headquarters in the Kingdom. These exemptions are governed by specific regulations designed to preserve spending efficiency and ensure the timely execution of strategic projects. The Local Content and Government Procurement Authority has notified all relevant entities of the mechanism for submitting exemption requests through the “Etimad” digital platform. This measure seeks to strike a balance between adherence to the “Relocation of Headquarters” decision that came into effect from the beginning of 2024, and the practical requirements of projects involving highly specialized technical expertise or strong financial competitiveness. Under the government’s earlier decision, contracting with any foreign company or commercial establishment whose regional headquarters is located outside the Kingdom was suspended as of early 2024. This directive applies to all government agencies, institutions, funds, and their affiliated bodies. According to reliable sources, the Local Content and Government Procurement Authority has formally communicated the regulatory framework governing government contracts with companies that do not maintain a regional headquarters in the Kingdom, as well as with related parties. The regulations permit government entities […]