Saudi Arabia’s government has approved a law to improve the way it procures contracts and services “by saving money, making the process fairer, and boosting local bidders,” Reuters reports, citing information from the Ministry of Finance.
The new Government Tendering and Procurement law is an “important measure” within Vision 2030 reforms as it helps to improve the government’s fiscal position by maximizing costs and improving the efficiency of financial planning, Reuters reports.
“The law seeks to allocate and manage financial resources effectively, provides more transparency in all tenders and procurement procedures,” Finance Minister Mohammed al-Jadaan said in a statement.
The new law introduces flexibility in the price of contracts and compensations in the case of increases in raw material prices, custom duties and taxes. It also aims to ensure wider participation by small and medium enterprises by giving them priority over larger competitors and exempting them from providing initial guarantees, Reuters reports.