Government Contract Bidding in Saudi Arabia: A Guide for Global Businesses

Saudi Arabia has one of the largest project pipelines on earth, estimated to be worth $1.8 trillion. Unsurprisingly, companies are eager to establish a presence in the region’s most active procurement market.

For global firms seeking to set up a business in Saudi Arabia, understanding how to navigate the specific requirements of the target government entity and how your company can effectively fulfill them is essential.

This guide outlines the requirements of government bidding and provides the key information your company needs to win contracts.

Government Bidding in Saudi Arabia: Mastering Etimad

Any foreign entity interested in doing business with the government can use Etimad to search bidding opportunities through the Etimad platform, which standardizes bidding processes, ensures fair competition, and provides direct access to thousands of government opportunities in technology, infrastructure, healthcare, and consulting.

Since its establishment, over 1 million contracts have been processed through Etimad, with more than half a million government representatives using it. By region, Riyadh accounted for the highest share of contracts, followed by the Eastern Province and Jeddah.

By using Etimad, you can understand your target market, particularly the pricing elements and competitors.

For example, when reviewing bid history for the Ministry of Health, you can search past bids to see who submitted them and at what amounts. This provides accurate insights that help you estimate and set competitive pricing for new bids.

Leveraging SME Status

The government provides strong support for SMEs, giving them certain advantages in the bidding process. SMEs receive special scoring, which can give them a competitive edge over larger companies.

Companies with fewer than 250 employees and annual revenue below certain thresholds can obtain Monshaat certification, which provides preferential treatment in the bidding process and eliminates the need for submitting bid bonds.

These measures are designed to help SMEs participate more easily in the procurement ecosystem and take advantage of opportunities through platforms like Etimad.

Prerequisites: What You Need Before You Start

Phase 1: Essential Registration Documents

To even create an account on Etimad, you must have:

Commercial Registration (CR)—This is mandatory and your gateway to the platform
Chamber of Commerce membership
Zakat certificate
Corporate bank account
VAT registration certificate
GOSI (General Organization for Social Insurance) registration
Monshaat SME certification (recommended to avoid bid bond delays)
Investment license (MISA)

Depending on your industry, additional certifications may be required—for example, construction companies need certification from Bina, training providers must obtain TVTC certification, and insurance companies require approval from SAMA.

NOTE: The evaluation criteria vary by sector, with technical proposals often carrying 70–80% of the score in consulting, while construction and supply tenders emphasize price.

Financial proposals are weighted differently, and some entities require separate technical and financial submissions.

Key Points to Consider When Creating Your Etimad Portal

Creating an active account on Etimad is separate from preparing to submit bids.
Most bids (over 99%) require the mandatory legal and financial documents.
Most bids are submitted in Arabic, and the portal is not fully supported in English.
Build your profile with all documents complete and ready before starting the bidding process to avoid delays.

Understanding Bidding Methods

When you go to bid on a government contract, there are different ways the government manages the process depending on the type of procurement.

1. General Tenders (Public Bids)

The government announces these tenders publicly, sets a deadline for proposal submissions, and gives companies sufficient time to respond, enabling a broad range of suppliers to participate. Open tendering is particularly common for large-scale procurement needs, as it helps ensure fair competition, improved service quality, and more competitive pricing.

2. Limited Tenders

Limited tendering is a selective process used when the government requires specialized services available from a limited number of providers—typically no more than five companies. are invited based on proven capabilities and past performance, often demonstrated through participation in public tenders.

By limiting the number of bidders, the process becomes more efficient while ensuring qualified vendors are selected to meet specific project needs.

3. Two-Stage Tenders (RFI then RFP)

Sometimes the government does not have complete details about timing, quantities, or methods for a project. In such cases, they issue a Request for Information (RFI) to gather data, proposals, and estimated budgets. Companies that pass the RFI stage are then invited to submit a Request for Proposal (RFP), where real competition begins.

4. Framework Agreements

These are long-term agreements used when the government cannot predict exact timing or quantities. For example, technical support for air conditioning maintenance or consulting services may be needed sporadically over several years.

Companies under a framework agreement provide services as required, building long-term relationships and positioning themselves to be selected for future projects.

Bidding Phases & Opportunity Search

Probably one of the hardest tasks to pull off in the bidding process is searching for bid opportunities that are particularly relevant to your company and market position.

Being prepared in terms of your search strategies is key to identifying and securing projects for sustained growth and establishing your firm for enduring success in a fiercely competitive industry.

Here are the essential types of search methods available on Etimad:

Targeted Search: If you know the specific government entity, region, or type of opportunity you want to pursue, you can search directly using those parameters.

Keyword Search: For a broader approach, use Arabic keywords related to your services or sector to identify relevant bids. This is similar to setting up a structured search on a search engine.

Once opportunities are identified, you can also review historical bids to gain insights on competitors, pricing, and past outcomes. Important details include submission deadlines and when bids will be opened.

Common Mistakes Companies Make

Incomplete proposals: Submitting partial technical proposals just to participate in a tender phase, even when the bid clearly allows projects to be divided among multiple contractors, significantly reduces chances of success.
Missing mandatory documents: Failing to submit required legal or administrative documents, or submitting them incorrectly, often leads to immediate disqualification.
BOQ pricing errors: Inaccurate pricing or mismatched quantities in the Bill of Quantities are very common. Even when projects are phased, each phase must be broken down exactly as outlined in the BOQ.
Lack of clarification questions: Not using the official window to submit clarification questions is a missed opportunity. Companies should submit two to three focused questions and review competitor inquiries on the platform.

Driven by Vision 2030, rising government investments across multiple sectors present major opportunities for companies that are well-prepared and take a long-term view. For international companies, success in Saudi government procurement depends on proactive engagement with the relevant government entities.