Certificate for Government Projects in Saudi Arabia

Developing the economic and investment infrastructure in the Kingdom of Saudi Arabia is one of the most important goals it seeks to achieve, whether by conducting new projects or developing existing ones. This is achieved by allowing investors to tender for government projects and bids in the Kingdom. The Royal Commission sets the regulations for bidding for government projects and how to obtain a temporary license to conduct a single government or semi-government contract, according to the Ministerial Resolution No. (405) dated 22/10/1435 AH, which we shall explain below:

What is Tendering for Government Projects in KSA?

Government project bidding is a competition among individuals or companies to tender for a contract or concession for government projects in KSA. 

Entities wishing to be qualified by the Ministry of Investment are required to apply for a temporary license/ certificate to tender for government projects pursuant to the Ministerial Resolution No. (405) dated 22/10/1435 AH, in order to submit relevant bids.

The certificates are applied for through the website (the E-Services Portal) free of charge, and the service is delivered within a maximum of two working days.

What are the Required Documentations?

• A copy of the commercial register of the entity in its home country certified by the Saudi Embassy. 
• The financial statements for the past three fiscal years of the applicant entity prepared by an internationally certified public accountant; provided that the audit report is free of any observations. 
• Copies of certificates of achievements for three projects conducted by the entity as the main contractor within the last seven years; provided that the minimum value of each exceeds the minimum value set forth by the Ministry of Municipal and Rural Affairs for first-class certified contractors in KSA. 
• A valid copy of the ISO 9001 certificate. 
• A valid copy of the ISO 14001 certificate or an alternative. 
• A valid copy of the Occupational Safety Assessment Series (OSHAS 18001). 
• An acknowledgement confirming the credibility of information provided, including that the authorized signatory, and the official means of communication.

What are the rules and restrictions to temporary licenses and certificates for tendering for government projects in Saudi Arabia?

• The certificate is valid for one year only. 
• The certificate does not entitle the entity to issue a commercial registration. 
• In case the government project is awarded to the entity, it shall not execute the contract except after obtaining a service/ temporary license for conducting a single government/ semi-government contract. 
• The minimum total revenue of the entity as per the financial statements for the three years prior to the certificate request must be five hundred million Saudi riyals. 
• The entity must have achieved profit in the recent three financial statements for the last five years in order to apply for a temporary certificate. 
• All documents provided for this application must be certified by the Saudi embassy in the applicant country. 
• The certificate is applied for free of charge.

Issuance of temporary government licenses

Issuance of a temporary license to conduct a single government/semi-government contract:

• Foreign companies that are awarded government or semi-government projects, and that do not hold a foreign investment license in the contract field of profession, may apply for a temporary license to conduct the contract. The temporary license expires by the end of the contract.

Required Documentation:

• A copy of the commercial registration of the entity in its home country certified by the Saudi Embassy.
• A copy of the contract or an official letter signed by the relevant government entity, and indicating the period of the contract.
• There are no conditions or restrictions on this license.

Licenses Fees 

• License fees are 2,000 Saudi Riyals yearly, as per the contract period.
• License fees for the first year subscription to obtain services from the Investor Relations Centers of the Ministry of Investment are 10,000 Saudi Riyals; then, the yearly subscription fees in the following years are 60,000 Saudi Riyals.

Service fees shall be paid within (60) days from the bill issuance date. In case of delay, the service shall be cancelled and a new application has to be submitted.

The temporary licenses are applied for through the website (the E-Services Portal), and the service is delivered within a maximum of two working days.