In December 2022, Saudi Arabia’s Council of Ministers issued a resolution approving the regulations for government agencies’ contracts with firms that do not have an RHQ in Saudi Arabia and the parties associated with them.
The regulation will not apply to government works and purchases whose estimated value is less than SAR1 million. The decision comes days before the deadline, January 2024, for firms to move their regional headquarters to Saudi Arabia. Otherwise, firms will risk not being able to secure government contracts worth hundreds of billions of dollars.
