Article 11 of the Saudi Contractors Classification Law
المادة 11 من نظام تصنيف المقاولين
The article provides that a contractor licensed under the Foreign Investment Law is classified by the same procedures as a Saudi contractor, and the Council of Ministers may exempt him under controls it sets.
Official text (Arabic)
This article has not been amended since the law was issued.
يصنف المقاول المرخص له بالعمل وفقًا لنظام الاستثمار الأجنبي حسب الإجراءات المعمول بها في تصنيف المقاول السعودي. ولمجلس الوزراء استثناؤه وفق ضوابط يضعها لذلك.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 11 explained in plain English
This article deals with the foreign contractor, meaning the contractor licensed to work under the Foreign Investment Law. It sets two rules for him:
- The rule: equal procedures. This contractor is classified according to the procedures in force for classifying a Saudi contractor, so no special procedures are imposed on him, and he is not exempt from classification merely because he is foreign.
- The exception: the power of the Council of Ministers. The Council of Ministers may exempt the foreign contractor, under controls the Council sets for that purpose.
The article does not specify the scope or conditions of this exemption, or whether it is from classification as a whole or from some of its procedures; that depends on the controls the Council of Ministers sets. The power here belongs to the Council of Ministers, not the Minister.
In practice, a foreign company that wants to be classified goes through the same path as a Saudi contractor, that is, an assessment of its financial, technical, administrative and executive capabilities, which is the meaning of classification in Article 1. The definition of contractor in Article 1 requires that he be lawfully licensed. Article 12 also allows the Ministry to charge a fee for its services, set by agreement with the Ministry of Finance. A foreign investor may consult a lawyer specialized in foreign investment and contracting matters.
Practical example
A foreign engineering company obtained an investment license to work in the Kingdom and wants to compete for government projects subject to classification. Under this article it applies for classification under the same procedures applied to Saudi contracting companies, unless it is covered by an exemption from the Council of Ministers under its controls.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 11 of the Saudi Contractors Classification Law
Is a foreign contractor classified in Saudi Arabia?
Yes. A contractor licensed under the Foreign Investment Law is classified according to the procedures in force for classifying a Saudi contractor.
Can a foreign contractor be exempted from these procedures?
The Council of Ministers may exempt him under controls it sets for that purpose.
Does a foreign contractor have different classification procedures?
No. The rule is that he is classified by the same procedures applied to a Saudi contractor.
More articles on The Contractor's Classification Certificate and Amending It
- Article 2
The article makes the Ministry of Municipal, Rural Affairs and Housing responsible for classification and for issuing, amending, suspending and canceling its certificates, deciding applications within a period set by the Regulations.
تتولى الوزارة -بالتنسيق مع الجهات ذات العلاقة- التصنيف وإصدار شهادات التصنيف وتعديلها وإيقافها وإلغاءها، وفق أحكام النظام واللائحــــة، على أن يبت في طلب التصني
- Article 7
The article lets a contractor request an amendment of his classification certificate by raising, adding or deleting a field or activity, supported by information and data as the Regulations require.
للمقاول أن يطلب تعديل شهادة تصنيفه برفع أي مجال (أو نشاط) أو إضافته أو حذفه منها، على أن يعزز طلبه بالمعلومات والبيانات التي تؤيد ذلك، وفقًا للشروط التي تحددها
- Article 8
The article provides that the Minister or his delegate issues the decision classifying the contractor in the field or activity and grade he deserves, and a certificate is granted for the period set by the Regulations.
يصدر الوزير أو من يفوضه قرارًا بتصنيف المقاول في المجال (أو المجالات) أو النشاط (أو الأنشطة)، والدرجة التي يستحقها، بناءً على ما توافر من معلومات وبيانات، ويمنح
- Article 10
The article requires a contractor to request an amendment of his classification certificate when a legal change in his status affects his classification, in the cases the Regulations specify.
إذا حدث أي تغير قانوني على وضع المقاول مما يؤثر على تصنيفه، فعليه التقدم بطلب تعديل شهادة التصنيف وفقًا للحالات التي تحددها اللائحة.
- Article 12
The article allows the Ministry to charge a fee for its services under the law, with the services and fees set by agreement with the Ministry of Finance.
تتقاضى الوزارة مقابلًا ماليًّا عن الخدمات التي تقدمها وفق أحكام النظام، على أن تحدد هذه الخدمات والمقابل المالي لها بالاتفاق مع وزارة المالية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.