Mohammed bin Abdullah Al-Jadaan, the Saudi Finance Minister/Bloomberg
Saudi Arabia’s Minister of Finance said that the new law will maximise the efficiency of the Kingdom’s spending by identifying the actual needs of government agencies as well as improving quality in works and procurement.
Wednesday 17, July 2019 BY KUDAKWASHE MUZORIWA
Saudi Arabia's Ministry Finance said that the 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.
The Finance Ministry stated that the new Government Tendering and Procurement law facilitates the achievement of fiscal balance by enhancing the effectiveness of financial planning, resource management as well as elevating government procurement procedures, organisation and governance in line with international best practises.
Mohammed bin Abdullah Al-Jadaan, the Saudi Finance Minister, said, “The law seeks to allocate and manage financial resources effectively, provides more transparency in all tenders and procurement procedures such as submission and opening of proposals through the unified portal (Etimad).”
Among other changes, the new tendering and procurement law introduces flexibility in the price of contracts and compensations in the case of increases in raw material prices, customs duties and taxes.
Similarly, the law aims to ensure wider participation by SMEs by giving them priority over larger competitors and exempting them from providing initial guarantees.