An amendment to Article (108 bis) of the Executive Regulations of the Tenders and Auctions Law, effective from 16 March 2026.
Decision of the Minister of Finance No. (9) of 2026 has been issued, amending the amounts of the exemptions granted to micro, small and medium-sized enterprises.
First: where the amendment sits
The decision does not touch the Law Regulating Tenders and Auctions promulgated by Law No. (24) of 2015. It amends the amounts set out in Article (108 bis, first and second paragraphs) of the law’s Executive Regulations, issued by Council of Ministers Decision No. (16) of 2019 and amended by Decision No. (11) of 2022.
This means that the conditions for qualifying for the exemption, and the definition of the companies that benefit from it, are unchanged. Only the financial threshold has changed. A company excluded from the exemption for a reason relating to its classification or its status remains excluded after the amendment.
Second: what the amendment provides
The decision provides that the amounts set out in Article (108 bis, first and second paragraphs) shall be five million riyals instead of one million riyals. This raises the ceiling of tenders in which national micro enterprises are exempt from submitting the provisional and final guarantees.
The threshold rose fivefold in a single step. This is consistent with the objective announced when the Council of Ministers approved the draft decision: to encourage entrepreneurs to take part in government tenders and to broaden the base of contractors.
Third: the practical effect on suppliers
The effect is concentrated on the two items that weigh most heavily on a company’s liquidity. Provisional and final guarantees require funds to be frozen, or bank guarantees to be issued, for what can be a long period, which is a heavy burden on small companies. The price of the tender documents is a non-recoverable cost paid before the outcome of the award is known.
Raising the ceiling to five million riyals lifts these two costs from a wider range of tenders, without affecting the technical qualification requirements or the criteria for comparing bids. The exemption reduces the cost of taking part, but it gives the supplier no advantage in the award.
Publication and entry into force
The decision was published in the Official Gazette, Issue No. (5), on 15 March 2026. Its second article provides that all competent authorities, each within its remit, shall implement it, and that it takes effect from the day following its publication in the Official Gazette, that is, from 16 March 2026.
In summary
The decision raised the exemption threshold fivefold, opening to micro, small and medium-sized enterprises a range of tenders where the cost of entry had kept them from taking part. We recommend that suppliers classified within these categories review open tenders valued below five million riyals, and confirm that the definition of a micro, small or medium-sized enterprise applies to them under the approved definition before basing any decision on the exemption.