Saudi Finance Ministry Warns Against Starting Government Projects Before Contract Awards

The King Abdullah Financial District (KAFD) in Riyadh (KAFD)
The King Abdullah Financial District (KAFD) in Riyadh (KAFD)
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Saudi Finance Ministry Warns Against Starting Government Projects Before Contract Awards

The King Abdullah Financial District (KAFD) in Riyadh (KAFD)
The King Abdullah Financial District (KAFD) in Riyadh (KAFD)

As Saudi Arabia steps up efforts to strengthen discipline in public procurement and contract execution, the government has approved a new Government Tenders and Procurement Law aimed at enhancing governance, transparency and the efficiency of the procurement system.

Asharq Al-Awsat has learned that the Ministry of Finance has warned domestic private-sector companies that contract award and contracting procedures must be completed in accordance with the approved regulations before work begins on any government project, service or procurement.

The Cabinet on Tuesday approved the new Government Tenders and Procurement Law to strengthen governance and transparency, improve planning and execution, and promote clarity, fairness and equal opportunity in competitive bidding and contractual dealings.

Finance Minister Mohammed Al-Jadaan said the law builds on the Kingdom’s efforts to develop the regulatory framework supporting the goals of Saudi Vision 2030, including stimulating investment and improving the efficiency and sustainability of public finances.

According to information obtained by Asharq Al-Awsat, the ministry stressed that bypassing contract award and contracting procedures—such as beginning work before an award decision is issued, relying on verbal work orders, or carrying out work beyond a contract’s scope without completing the required legal procedures—could lead to unjustified financial claims, as well as disputes and grievances that delay payments and violate the Government Tenders and Procurement Law and its implementing regulations.

Sources said the ministry issued the warning after identifying practices that could breach the law and its executive regulations, resulting in unjustified financial claims stemming from work carried out in violation of procurement rules.

Types of Violations

The ministry cited several examples of prohibited practices, including starting work before a government entity issues a contract award and completes contracting procedures, carrying out work or procurement based on verbal authorization, and performing work outside a contract’s scope without the required legal approvals.

It warned that such practices could trigger disputes with government entities, repeated financial claims and grievances submitted to the Ministry of Finance, and delays in the payment of legitimate dues.

The ministry urged the Contractors Committee and other stakeholders involved in the procurement system to comply with the Government Tenders and Procurement Law and its implementing regulations to reduce violations, avoid financial claims and grievances, and safeguard the rights of all parties.

It also continues to encourage private-sector companies to submit their legitimate financial claims promptly.

The ministry underscored the importance of enabling private-sector firms to submit financial claims through the Etimad electronic platform, provided all legal requirements and supporting documentation have been completed.

Bid Opening and Evaluation

Al-Jadaan said the new law will help government entities achieve their objectives and accelerate project implementation. Among its key provisions are the merger of the bid-opening and bid-evaluation committees into a single body, enhancements to the direct-purchasing mechanism and an increase in its financial ceiling, expansion of limited tenders to include freelance professionals, and broader authority for heads of government entities to simplify procedures and speed decision-making.

He added that supporting private-sector growth is one of the law’s principal objectives. Under the new rules, government entities must process payments owed to private-sector contractors within the prescribed deadlines before entering into new contractual commitments, a measure intended to improve payment discipline and strengthen confidence in government contracting.

The minister said the law also advances broader economic and development objectives by strengthening regulatory frameworks for research, development and innovation, while promoting industrial localization and knowledge transfer.



UK’s Burnham Says He Is Open to Discussing EU Free Movement

 21 October 2026, United Kingdom, London: Britain's Prime Minister Andy Burnham leaves 10 Downing Street to attend Prime Minister's Questions at the Houses of Parliament. (dpa)
21 October 2026, United Kingdom, London: Britain's Prime Minister Andy Burnham leaves 10 Downing Street to attend Prime Minister's Questions at the Houses of Parliament. (dpa)
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UK’s Burnham Says He Is Open to Discussing EU Free Movement

 21 October 2026, United Kingdom, London: Britain's Prime Minister Andy Burnham leaves 10 Downing Street to attend Prime Minister's Questions at the Houses of Parliament. (dpa)
21 October 2026, United Kingdom, London: Britain's Prime Minister Andy Burnham leaves 10 Downing Street to attend Prime Minister's Questions at the Houses of Parliament. (dpa)

British Prime Minister Andy Burnham has said he wants a discussion about returning to the European Union's freedom of movement rules for workers, a key issue in the 2016 Brexit referendum which led to Britain leaving the bloc.

Building on previous comments about the need to rethink ties with Brussels, Burnham told the Sunday Times that the influx of EU workers into Britain before Brexit had posed very significant challenges. "But, at the same time, it ‌was a ‌type of immigration that perhaps wasn't as difficult (as now)," he ‌said.

"Revolving ⁠door migration where ⁠people would come and then go back is different. The balance of migration has changed, hasn't it, since then? I think we’ve just got to have an honest discussion about those things."

Official data has shown long-term net migration in 2025 fell to close to its level before a new post-Brexit immigration system was introduced at the start of 2021.

In September, two months after replacing Keir Starmer as Labour Party leader ⁠and prime minister, Burnham said Britain should consider options for ‌its relationship with the EU, including possibly rejoining ‌the bloc one day.

He had previously backed the pledges of Starmer's government which included no ‌return to freedom of movement which Brussels sets as a condition for being ‌part of the bloc's single market.

In his interview with the Sunday Times, conducted on October 19, Burnham said the issue of freedom of movement could be considered as part of a broader reset of Britain's relationship with the EU, including on data sharing and ‌migration.

"You've got to see it in the round, rather than just looking at freedom of movement on its own," ⁠he said.

Burnham, who ⁠is trying to find ways to speed up Britain's economy, is due to meet top EU officials for a summit on November 20.

He said he could not imagine recommending that Britain adopt the euro currency or the EU's border-free travel arrangements.

A new referendum would be needed to rejoin the EU but not necessarily to join the bloc's single market or a customs union, the Sunday Times quoted Burnham as saying.

Former Conservative finance minister Jeremy Hunt, who campaigned to stay in the EU in 2016, said it would be a mistake to reopen one of the fundamental debates of the referendum and he said relaxing immigration rules would hurt people in Britain.

"I think it will be a hammer blow to getting people off welfare and into work," Hunt told Sky News.


Sydney’s New International Airport Opens to Passengers

 A Jetstar aircraft departs on the inaugural commercial service from the newly-opened Western Sydney International Airport in Sydney on October 25, 2026, marking the start of regular passenger operations at Australia's newest international gateway. (AFP)
A Jetstar aircraft departs on the inaugural commercial service from the newly-opened Western Sydney International Airport in Sydney on October 25, 2026, marking the start of regular passenger operations at Australia's newest international gateway. (AFP)
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Sydney’s New International Airport Opens to Passengers

 A Jetstar aircraft departs on the inaugural commercial service from the newly-opened Western Sydney International Airport in Sydney on October 25, 2026, marking the start of regular passenger operations at Australia's newest international gateway. (AFP)
A Jetstar aircraft departs on the inaugural commercial service from the newly-opened Western Sydney International Airport in Sydney on October 25, 2026, marking the start of regular passenger operations at Australia's newest international gateway. (AFP)

Sydney's new ‌A$5.6 billion ($3.94 billion) airport opened to passengers on Sunday after more than a decade of planning, in what Prime Minister Anthony Albanese said was a milestone for the country's most populous city.

The new Western Sydney International Airport in Badgerys Creek, about 60 km (37.3 miles) west of central Sydney, will operate 24 hours a day, ‌giving airlines ‌access to a fast-growing and ethnically ‌diverse ⁠population center.

The current ⁠airport, located closer to Sydney's central business district, can host takeoffs and landings only until 11 p.m. and after 6 a.m., limiting airline scheduling options relative to other major Australian cities like Melbourne.

"For ⁠the first time in more ‌than 50 years, ‌Australia is opening a major new airport. It’s ‌a milestone that has been decades in ‌the making," Albanese said in a statement.

"I’m very proud to officially open it," he said.

Qantas' budget arm Jetstar was due to ‌operate the first outbound flight to the Gold Coast on Sunday, ⁠the ⁠airport said in a statement. The airport has capacity for more than 80 million passenger movements annually, it said.

The start of passenger services comes after cargo flights commenced at the facility in July.

Located on a 1,780-hectare (4,398-acre) site purchased by the federal government in the 1980s, the airport was completed in July 2025 after a seven-year build and 15 years of planning.


Trump Says Audi to Invest $4.2 Bn in Its First US Auto Plant

US President Donald Trump looks on as CEO of Audi AG Gernot Dollner speaks at a midterm election campaign rally at Guardian Centers of Georgia in Perry, Georgia on October 24, 2026. (AFP)
US President Donald Trump looks on as CEO of Audi AG Gernot Dollner speaks at a midterm election campaign rally at Guardian Centers of Georgia in Perry, Georgia on October 24, 2026. (AFP)
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Trump Says Audi to Invest $4.2 Bn in Its First US Auto Plant

US President Donald Trump looks on as CEO of Audi AG Gernot Dollner speaks at a midterm election campaign rally at Guardian Centers of Georgia in Perry, Georgia on October 24, 2026. (AFP)
US President Donald Trump looks on as CEO of Audi AG Gernot Dollner speaks at a midterm election campaign rally at Guardian Centers of Georgia in Perry, Georgia on October 24, 2026. (AFP)

US President Donald Trump announced on Saturday that German automaker Audi planned to invest $4.2 billion to build its first factory in the United States that will produce 200,000 vehicles a year.

Audi confirmed the investment in a release, saying the plant would create about 4,500 jobs.

"I'm thrilled to announce a massive auto manufacturing investment in the great state of Georgia by a fantastic company," Trump said at a campaign rally 10 days ahead of the November 3 midterm elections that will determine control of the US Congress.

"Audi has just committed to invest $4.2 billion dollars in nearby Macon, Georgia, to begin the construction next month on a massive plant that will produce 200,000 cars a year," Trump continued.

Audi, which is a unit of Volkswagen, said in its release that construction was scheduled to begin next year and production in the early 2030s.

"The planned investment intends to mark a long-term commitment to the United States and to establish North America as a third major pillar of Audi's global production network alongside Europe and China," it said.

VW, long a titan of German industry, has struggled with US tariffs, Chinese competition and patchy demand in Europe.

About 50,000 job cuts have already been agreed across the 10-brand Volkswagen Group -- mostly at VW, Audi and Porsche -- but the company has said another 50,000 could be required worldwide to slash costs.