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Regulation · Kingdom of Saudi Arabia (Bureau of Experts at the Council of Ministers)

Saudi Government Tenders and Procurement Law (1448H)

Saudi Arabia's new public procurement law (Royal Decree M/76, 1448H) — stricter rules on direct and limited tenders.

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Our summary

The new Government Tenders and Procurement Law was issued by Royal Decree No. M/76 dated 27/02/1448H and replaces the previous law of 1440H (Royal Decree M/128). It applies to government entities and comes into force 120 days after publication in the Official Gazette.

Key changes for auditors: every direct purchase (now up to SAR 1 million) must have documented reasons; a limited tender needs a written explanation of why a public tender is not suitable; if an award goes ahead despite a gross error in the cost estimate, a report goes to the General Auditing Bureau; local content must be planned with the Local Content and Government Procurement Authority; and exemptions need a documented financial assessment.

How auditors use it: Test direct and limited purchases for documented reasons, check award files against the new rules, and confirm that local-content and reporting steps were followed.

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