Article 2 of the Saudi Government Tenders and Procurement Law
المادة 2 من نظام المنافسات والمشتريات الحكومية · الفصل الثاني: أهداف النظام
The article sets out the Law's objectives: regulating procedures for works and procurement and preventing abuse of influence, achieving the best value for public funds, and promoting integrity, equality, transparency and economic development.
Official text (Arabic)
This article has not been amended since the law was issued.
يهدف النظام إلى الآتي:
1- تنظيم الإجراءات ذات الصلة بالأعمال والمشتريات، ومنع استغلال النفوذ وتأثير المصالح الشخصية فيها؛ وذلك حماية للمال العام.
2- تحقيق أفضل قيمة للمال العام عند التعاقد على الأعمال والمشتريات وتنفيذها بأسعار تنافسية عادلة.
3- تعزيز النزاهة والمنافسة، وتحقيق المساواة، وتوفير معاملة عادلة للمتنافسين؛ تحقيقاً لمبدأ تكافؤ الفرص.
4- ضمان الشفافية في جميع إجراءات الأعمال والمشتريات.
5- تعزيز التنمية الاقتصادية.
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 2 explained in plain English
This article sets out the purposes the Law was made to achieve, which are five objectives:
- Regulating procedures and preventing abuse of influence: Controlling the procedures for works and procurement and preventing personal interests from affecting them, to protect public funds.
- Best value for public funds: Contracting and executing at fair, competitive prices.
- Integrity and equality: Promoting competition and treating competitors fairly, achieving the principle of equal opportunity.
- Transparency: In all works and procurement procedures.
- Economic development: Promoting it through government procurement.
Why this article matters in practice: The objectives do not by themselves create a specific procedure, but they show the spirit of the Law and help in understanding and interpreting its other articles. The principles in later articles, such as equality among those wishing to deal with the government (Article 4) and providing clear, unified information to competitors (Article 5), are a direct application of these objectives.
The terms used here, such as "government entities", are understood according to their definitions in Article 1. Anyone who believes a procedure in a government tender violated these principles would do well to refer to the detailed articles governing that procedure, and to consult a lawyer who specializes in government contracts and administrative disputes when needed.
Practical example
A small company in Jeddah hesitates to take part in government entities' tenders, believing the opportunities are reserved for particular companies. Its adviser explains that among the Law's objectives are achieving equality and equal opportunity and ensuring transparency in all procedures, and that its detailed articles are understood in light of these objectives.
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 2 of the Saudi Government Tenders and Procurement Law
What are the objectives of the Government Tenders and Procurement Law?
Regulating procedures for works and procurement and preventing abuse of influence to protect public funds, achieving the best value for them at fair, competitive prices, promoting integrity, equality and equal opportunity, ensuring transparency, and promoting economic development.
Does the Law aim to prevent favoritism in tenders?
Yes. Among its objectives is preventing abuse of influence and the effect of personal interests on works and procurement procedures, to protect public funds.
Does best value for public funds always mean choosing the cheapest bid?
The article speaks of achieving the best value for public funds at fair, competitive prices, and does not provide for choosing the cheapest bid in every case; other articles set the criteria for evaluating bids.
More articles on General Provisions and Principles of Government Tenders
- Article 1
The article defines the key terms used in the Government Tenders and Procurement Law, such as government entities, the portal, the framework agreement, qualification, the standstill period, and emergency and urgent cases.
يقصد بالعبارات والمصطلحات الآتية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتض السياق خلاف ذلك: النظام: نظام المنافسات والمشتريات الحكومية
- Article 3
The article requires government entities to deal only with licensed persons, and, when dealing with foreigners inside the Kingdom, to first confirm that there is not more than one qualified local person.
1- تتعامل الجهات الحكومية عند تنفيذ أعمالها وتأمين مشترياتها مع الأشخاص المرخص لهم بذلك، طبقاً للأنظمة والقواعد المتبعة. 2- على الجهة الحكومية عند تعاملها مع أش
- Article 4
The article provides that everyone who meets the conditions for dealing with a government entity is given equal opportunities and treated on an equal footing with others.
يعطى جميع الأشخاص الراغبين في التعامل مع الجهة الحكومية، ممن تتوافر فيهم الشروط التي تؤهلهم لهذا التعامل؛ فرصاً متساوية ويعاملون على قدم المساواة.
- Article 5
The article requires clear, unified information about the required works and procurement to be provided to competitors, and requires that they be able to obtain it at a set time.
تُوفَر للمتنافسين معلومات واضحة وموحدة عن الأعمال والمشتريات المطلوبة، ويمكَنون من الحصول عليها في وقت محدد.
- Article 6
The article subjects public tenders to three principles: openness, transparency and equal opportunity.
تخضع المنافسة العامة لمبادئ العلانية والشفافية وتكافؤ الفرص.
- Article 7
The article provides that bids may not be accepted, and contracts may not be made on them, except in accordance with the provisions of the Government Tenders and Procurement Law.
لا يجوز قبول العروض والتعاقد بموجبها إلا طبقاً لأحكام النظام.
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.