Finance Ministry seeks feedback on amendments to government procurement regulations

Logo of Ministry of Finance

Saudi Arabia’s Ministry of Finance proposed amendments to two articles of the government tenders and procurement executive regulation via the Istislaa platform, aiming to clarify criteria and conditions for contract termination in the public interest and address private sector concerns over final guarantee confiscations.

The ministry stated the amendments aim to enhance transparency, reduce disputes by clarifying termination standards, and boost private sector confidence, encouraging more participation in government tenders and increasing competitiveness.

Relevant entities involved in the amendments include the Ministry of Finance, Local Content and Government Procurement Authority (LCGPA), Government Expenditure and Project Efficiency Authority (EXPRO), and the National Center for Government Resource Systems (NCGR).

Key changes include Article 88, which sets clear timelines for enforcing contract termination decisions in the public interest, regulates procedures for final guarantee confiscation, and defines contract termination mechanisms to protect both the government entity and the contractor.

Meanwhile, the amendments cover Article 132 that specifies the cases warranting contract termination for public interest and requires government entities to document justifications and coordinate with the Ministry of Finance and the EXPRO before termination.

The public consultation period ends on October 22, 2025.