Saudi authorities tighten rules for contracting firms to ensure quality

The system is applicable to all projects in building and construction, operations and maintenance, communications and IT and real estate development.
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Updated 05 September 2021
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Saudi authorities tighten rules for contracting firms to ensure quality

  • A contracting firm’s financial, technical, and management abilities will be taken into consideration

JEDDAH: In a bid to improve quality control, the Kingdom has announced that tender applications for projects in different sectors will only be accepted by qualified contractors who meet the criteria recently set by the authorities, according to details published in the Kingdom’s official gazette Umm Al-Qura on Friday.

Under the new system announced in late August, contractors will be evaluated and classified based on several factors such as the qualification and specialties of a contracting company’s employees, experience, remuneration, percentage of the Saudi workforce, and gender ratio.

In addition to that, a contracting firm’s financial, technical, and management abilities will be taken into consideration and a thorough background check and history and quality of their completed projects will also be carefully studied.

The new rules stipulate that if two or more contractors are bidding for a project as a joint venture, at least one of them should meet the criterion while the other partner’s credentials should also match the minimum Saudi standards.

The regulations also apply to those contractors who have been licensed according to the foreign investment system. They should also be classified under the new system. However, a committee of ministers can make special exemptions for such contractors as per the requirement.

Violators of the new system will be subjected to penalties such as a change in classification to a lower level etc.

The system is applicable to all projects in building and construction, operations and maintenance, communications and information technology, real estate development, engineering consultation, conference and forums, and catering and nutrition.


Maersk to resume Suez Canal sailings for MECL service

Updated 5 sec ago
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Maersk to resume Suez Canal sailings for MECL service

  • Shipping companies are weighing a return to the critical Asia-Europe trade corridor more than two years after they started rerouting vessels around Africa following Yemeni Houthi rebels’ attacks

OSLO: Shipping group Maersk will resume sailings via the Red Sea and the Suez Canal for its ​MECL service, connecting the Middle East and India with the US east coast, the Danish company said on Thursday.
“Maersk has decided to implement a structural return to the trans-Suez route for all MECL service sailings,” the company said in a statement, ‌adding that this ‌was part of a ‌stepwise approach ⁠for ​its ‌fleet.
Shipping companies are weighing a return to the critical Asia-Europe trade corridor more than two years after they started rerouting vessels around Africa following Yemeni Houthi rebels’ attacks on ships in the Red Sea in what they said ⁠was a show of solidarity with the Palestinians in Gaza.
Maersk ‌on Monday said one ‍of its vessels ‍had tested the route as a ceasefire in ‍Gaza raised hopes for normal shipping traffic.
The change for the MECL service comes into effect with a sailing departing Oman’s port of Salalah on January ​26.
The Suez Canal is the fastest route linking Europe and Asia and, until ⁠the Houthi attacks, had accounted for about 10 percent of global seaborne trade, according to Clarksons Research.
The ceasefire in the Gaza conflict, in place since October last year, has renewed hope of normalizing Red Sea traffic.
The ceasefire has ended major combat in Gaza over the past three months, but both sides have accused the other of regular violations. More than 440 ‌Palestinians and three Israeli soldiers have been killed since the truce took effect.