Regulations
Foreign Companies Bidding on Saudi Government Tenders
1 November 2026 · 7 min read · By NextBid Bid Experts
A foreign company can win Saudi government work through a MISA registration and CR, a joint venture or a local prime. Here are the routes, the documents, and the local content and language rules.
Yes, a foreign company can win Saudi government work, but it does not bid as an outsider. It competes through a legal presence the buyer and the platform can verify, such as an investment registration with the Ministry of Investment (MISA) and a Saudi commercial registration (CR), or a partnership with a company that already has both. This guide sets out the routes, the documents, and the rules that shape a foreign bidder's chances under the current law and the new law, which takes effect in early January 2027. A tender offered before the new law takes effect stays under the current law unless the Minister of Finance decides to apply some of the new rules to it, so check that tender's booklet and announcements.
What routes does a foreign company have into Saudi government tenders?
There are three realistic routes and one that cannot bid, and the right route depends on how much of the work you will perform and how permanent you want your presence to be.
| Route | What it means | Watch for |
|---|---|---|
| Foreign-owned Saudi business | You register the investment with the Ministry of Investment (MISA), obtain a CR, and bid in the company's own name | The CR activity must match the tender |
| Joint bid or consortium (called "solidarity", التضامن, in tender documents) | You bid together with a Saudi company and share scope, risk and liability | The tender booklet decides whether and how consortia may bid |
| Subcontractor or supplier to a local prime | The Saudi company holds the contract and you deliver part of it | Subcontracting needs the entity's written approval and the prime stays jointly liable |
| Scientific and technical office or liaison office | A presence that supports your business in the Kingdom | MISA states that a scientific and technical office or a liaison office may not sign contracts or conduct commercial activity, so neither can bid |
Two of these routes have their own guides: see commercial registration activity and tender eligibility for the CR rule, and joint ventures and consortiums for bidding with a partner.
What does MISA registration involve?
MISA registers foreign investment in activities that are open to investment. For a foreign partner, MISA asks for a copy of the foreign company's commercial register certified by the Saudi Embassy, and the financial statements of its last fiscal year, also authenticated. Some activities carry extra conditions of their own, so confirm the requirements for your activity with MISA before you plan the timeline.
The investment registration is the foreign-ownership step, not the bidding step. To tender you also need the Saudi CR, the activity on it that matches the work, and a vendor account on Etimad. Etimad registration for a company with a Saudi CR follows the same process as for any vendor (see our step-by-step registration guide). A foreign establishment with no Saudi CR can instead open an account through the "supplier with no commercial register" option, but a government entity can contract a foreign company that is not licensed under the Investment Law only on conditions that include a MISA licence (see the question on bidding from abroad below).
When is a local presence required?
There is no single answer, because three different things get called local presence. First, a separate regional headquarters (RHQ) rule can apply to foreign companies that have no regional headquarters in the Kingdom but have one elsewhere in the region and appear on the list prepared by MISA, and to their related parties, when they contract with government entities, subject to exemptions; we explain it in Bidding Without a Regional HQ, so we do not repeat it here. Second, the tender booklet (كراسة الشروط) may set its own conditions, for example on the CR activity, registered office or how the contract will be executed. Third, local content requirements apply in the evaluation, where the booklet uses the local content mechanism, and again after award. Read the booklet first; it is the document the committee will apply.
How does local content affect a foreign bidder?
Local content is where a foreign firm is most exposed. Under the current preference regulation, small and medium enterprises that are classified by the Small and Medium Enterprises General Authority (Monsha'at) and at least 50% owned by Saudi citizens receive a price preference on contracts that are neither supply contracts nor high-value contracts: other bidders' prices are assumed to be 10% higher. A firm in which citizens own less than 50% of the capital does not qualify for that SME preference. For supply tenders, a national product receives a similar 10% preference over a foreign product.
On high-value contracts other than supply, the financial score is weighted 60% price and 40% for baseline local content, targeted local content and listed-company status. After award, the contractor must submit a local content plan and progress reports. The new law, which takes effect in early January 2027, keeps the priority for local SMEs and local content and hands the details to a new preference regulation due with the law, so do not assume the percentages will stay as they are. Our guide to local content in Saudi government tenders shows how to build the score.
Can a foreign company use a local partner or subcontractor?
Yes, but the law sets limits. Under the current law, a contractor may not assign the contract or part of it without written approval, and subcontracting needs the entity's written approval; the main contractor remains jointly liable. The current Implementing Regulations also cap subcontracted work at 30% of the contract value (above 30% and below 50% only with the prior consent of the spending-efficiency body and of the entity, and only if the work is split between more than one subcontractor). The new law, which takes effect in early January 2027, keeps approval and joint liability, but the new subcontracting cap is not yet published, so check the new Regulations when they are issued.
For a partner, this means the local company must be able to carry the contract, because it cannot simply pass the work on to you.
What about Arabic and attested documents?
Under both the current law and the new law, which takes effect in early January 2027, contracts and their annexes are written in Arabic; another language may be used alongside, but Arabic governs interpretation and execution. Plan for an Arabic contract, Arabic correspondence and a translation workflow. The law's language rule covers contracts; for the bid itself, follow the booklet. Certified foreign company documents, such as the embassy-certified commercial register used at MISA, should be kept current and translated by an accredited translator wherever the booklet or the entity asks for it. Our document checklist lists what committees expect to see.
A foreign company does not need to be Saudi to win, but it must be verifiable, eligible on its CR activity and ready for local content and Arabic contracts. Settle the structure (own entity, joint venture or subcontract) before you read the tender, not after.
Frequently asked questions
Can a foreign company bid on Etimad tenders?
Yes, if it has a legal presence that can register as a vendor, for example a MISA investment registration and a Saudi CR, or a Saudi partner that bids (a foreign company with no CR can also open an Etimad account, but see the answer on bidding from abroad). The tender booklet states the eligibility conditions for each tender.
Does a foreign company get the SME price preference?
No. The current preference regulation gives the SME preference to establishments classified by Monsha'at in which citizens own at least 50% of the capital. The new law, which takes effect in early January 2027, keeps the priority for local SMEs and leaves the details to a new regulation.
Can I bid from abroad without a Saudi entity?
Yes, but only on conditions, and not through an office. A scientific and technical office or a liaison office cannot bid, because MISA says these offices may not sign contracts or conduct commercial activity. Under the current Regulations, an entity can contract a foreign company that is not licensed under the Investment Law for work inside the Kingdom only after it announces on the Portal and on its own website to verify that no more than one qualified local company exists, and the foreign company must also hold a MISA licence, pass qualification and comply with the local content rules. MISA also offers a temporary registration to a foreign company that has won a government contract, which ends when the contract ends. The new law, which takes effect in early January 2027, keeps the verification principle and leaves the conditions to the new Regulations. Check the booklet and the RHQ rule before assuming a direct bid from abroad is possible.
Which language must a foreign bidder use?
Contracts must be in Arabic, with another language allowed alongside, and Arabic governs. For the bid itself, follow the language set in the tender booklet.
How much of a contract can a foreign firm subcontract?
Under the current Implementing Regulations, subcontracted work is capped at 30% of the contract value, and work above 30% and below 50% needs the prior consent of the spending-efficiency body and of the entity and must go to more than one subcontractor. The new Regulations will set the cap under the new law, which takes effect in early January 2027.
At NextBid, our bid management team takes a bid through to final submission, with technical and commercial proposals written natively in Arabic and English. We also check compliance before submission.