Saudi Arabia Develops Contracting Sector by Adopting Gov’t Classification System

Saudi Arabia supports the reform of the contracting sector by adopting the government classification (Asharq Al-Awsat)
Saudi Arabia supports the reform of the contracting sector by adopting the government classification (Asharq Al-Awsat)
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Saudi Arabia Develops Contracting Sector by Adopting Gov’t Classification System

Saudi Arabia supports the reform of the contracting sector by adopting the government classification (Asharq Al-Awsat)
Saudi Arabia supports the reform of the contracting sector by adopting the government classification (Asharq Al-Awsat)

With Saudi Arabia’s Shura Council having greenlit the contractor classification system, experts confirm to Asharq Al-Awsat that the new scheme will compel contractors to raise the degree of classification in the targeted sectors systematically.

According to specialists, this reduces the number of stumbling projects and aligns with the Kingdom’s aspirations.

The Minister of Municipal, Rural Affairs, and Housing Majed Al-Hogail said that the system is based on a balanced assessment that combines quantitative and qualitative criteria.

It enhances competition between contractors and gives new players with distinguished competencies more significant opportunities, added Al-Hogail.

Earlier, the Ministry of Municipal, Rural Affairs, and Housing had launched a point system for contractors to increase healthy competition and sustainability in the Kingdom’s construction sector.

The ministry also filled in the private sector on the point system linked to an e-platform.

As for the Shura Council approving the contractor classification system, the Chairman of Riyadh Contracting Committee Fahad Nasban said that the move reflects a great leap for boosting private sector quality production and performance.

Nasban pointed out that the new system will help raise the level of localization, employee wages, and the level of experience enjoyed by technicians, engineers, project managers, and marketers.

It will also enhance the quality of implemented projects, added Nasban.

The new system will also force contractors to adhere to specific conditions and fulfill several requirements before taking on quality implementation of projects, real estate expert Ibrahim al-Sahn told Asharq Al-Awsat.

High-quality implementation of projects, according to al-Sahn, is vital for realizing the national transformation plan, dubbed Vision 2030.

Al-Sahn maintained that government agencies carefully select contractors to implement their projects and pay attention to high-quality standards in cooperation with competent public authorities.



Saudi Energy Minister Emphasizes Importance of Balancing Growth, Energy Security

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Photo: Energy Ministry account on X
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Photo: Energy Ministry account on X
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Saudi Energy Minister Emphasizes Importance of Balancing Growth, Energy Security

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Photo: Energy Ministry account on X
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Photo: Energy Ministry account on X

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz participated in the Energy Transitions Working Group meetings, the 15th Clean Energy Ministerial and the 9th Mission Innovation Ministerial, held this week in Foz do Iguacu, Brazil, where he emphasized the importance of balancing economic growth and energy security.
The meetings focused on sustainable energy policies and equitable energy transitions within G20 efforts to enhance international cooperation aimed at achieving environmental sustainability and supporting innovations in clean energy technologies.
Prince Abdulaziz emphasized the importance of balancing economic growth, energy security, and climate change mitigation. He highlighted the Kingdom's leadership in Carbon Capture, Utilization, and Storage (CCUS) technologies, as well as its commitment to leading by example in leveraging circular carbon economy technologies, and affirmed the Kingdom's ambition to become a global leader in the production and export of clean energy.
Prince Abdulaziz also outlined Saudi Arabia's efforts to increase its renewable energy capacity, which is expected to reach approximately 44 gigawatts by the end of 2024, and touched upon the establishment of a hydrogen production hub in Ras Al Khair Industrial City, along with a major carbon capture and storage project, which will have a capacity of 9 million tons annually by 2027.