Law & Regulation
Government Tenders and Procurement Law
The Law governs public contracting and procurement by covered government bodies. It sets the governing principles, procurement methods, bidder treatment, award and contract framework, and remedies/administrative controls that the Executive Regulations develop in detail. It must be distinguished from the Private Sector Participation Law: a conventional public works or supply procurement may fall here, while a qualifying privatization/PPP follows its specialist framework and approved interfaces.
Legal Significance
What This Instrument Does
The Law establishes competition, transparency, value and integrity objectives; authorizes tendering and exceptional procurement routes; regulates qualification, bids, award and government contracts; and addresses securities, variations, delay, termination, complaints and local-content interfaces at framework level.
Why It Matters
For contractors, suppliers, advisers and financiers, the Law defines the legal validity of the route to award and the public counterparty's contracting environment. It affects bid strategy, qualification, pricing assumptions, performance security, change control and remedies throughout delivery.
Key Provisions
- Procurement principles and scope
Establishes the covered entities and objectives. Transaction relevance: confirms whether the public-procurement regime applies.
- Procurement planning and market engagement
Supports planned purchasing and controlled preparation. Transaction relevance: shapes pipeline reliability and bidder access to information.
- Competitive tender as baseline
Sets public competition as the ordinary method. Transaction relevance: protects award integrity and informs challenge risk.
- Alternative procurement methods
Permits limited tender, direct purchase and other routes under conditions. Transaction relevance: authority must evidence the lawful gateway.
- Qualification and bidder eligibility
Regulates capability assessment and exclusion. Transaction relevance: affects consortium structure and reliance on subcontractors.
- Bid submission, securities and validity
Establishes binding bid mechanics. Transaction relevance: errors may make a bid non-responsive or expose bid security.
- Evaluation and award
Frames technical/financial evaluation and award approvals. Transaction relevance: supports bid compliance and standstill/challenge analysis where applicable.
- Government contract requirements
Governs formalization, performance guarantees and performance duties. Transaction relevance: influences conditions precedent and mobilisation.
- Variations, price adjustment and delay
Provides statutory controls supplemented by regulations and contract terms. Transaction relevance: critical to construction change and claims strategy.
- Termination, suspension and sanctions
Establishes public-law remedies and contractor consequences. Transaction relevance: affects default exposure and future eligibility.
- Complaints and review
Provides administrative challenge mechanisms. Transaction relevance: tender remedies often require rapid procedural action.
When You Would Use This
Selecting or validating a public procurement route.
Preparing qualification and tender submissions.
Reviewing bid/performance security and award formalities.
Negotiating a public works, supply or services contract.
Assessing variation, delay, price-adjustment or termination rights.
Advising on procurement complaints or contractor sanctions.
InfraLex Relevance
The Law is the principal conventional public-procurement framework. Its Full V2 regulations record supplies the procedural detail that users need to apply the framework.
Legal Framework Position
- Public ProcurementPrimary / Framework Instrument
Instrument Overview
- Official Citation
- Royal Decree M/128, 13/11/1440H
- Instrument Type
- Law / Act
- Source Language
- Arabic
- Last Verified
- 6 September 2026