What changed?
The existing Government Tenders and Procurement Law remains the current framework during the transition.
A replacement law has been enacted and will enter into force on 2 January 2027, with implementing and preference regulations to follow.
Practical consequence: Review tender pipelines and transitional treatment now, then update controls when the implementing and preference regulations are officially issued.
Confirmed facts
Council of Ministers Decision No. 199 approved the new law, and Royal Decree No. M/76 gives the framework legislative effect.
The law was published in the Official Gazette on 4 September 2026. Article 101 states that it enters into force 120 days later, placing commencement on 2 January 2027.
Article 100 replaces the existing procurement law, subject to the published transitional provisions.
Implementing and preference regulations are to be prepared during the 120-day transition; they are not treated here as final until officially issued.
What changed
The new framework strengthens governance, transparency and procurement planning while reorganising tendering and contract-management processes.
The statutory preference framework continues to cover local content, local SMEs and Saudi-listed companies, with operating detail to be supplied through the preference regulations.
The Ministry of Finance says the direct-procurement threshold rises to SAR 1 million.
The law also includes procurement mechanisms relevant to research, development, innovation, localisation and technology transfer.