Article 64 of the Saudi Government Tenders and Procurement Law
المادة 64 من نظام المنافسات والمشتريات الحكومية · الفصل الثالث: المقابل المالي
Contract values in government contracts are paid in Saudi riyals, and the entity may specify one or more other currencies in the tender documents with the Ministry of Finance's prior approval.
Official text (Arabic)
This article has not been amended since the law was issued.
تدفع قيمة العقود بالريال السعودي، ويجوز أن تحدد الجهة الحكومية في وثائق المنافسة عملة أخرى أو أكثر على أن يكون ذلك بموافقة مسبقة من الوزارة.
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 64 explained in plain English
This Article sets a general rule on the currency of payment of the contracts that government entities conclude under the Law.
The rule: Contract values are paid in Saudi riyals. A bidder builds his bid and receives his dues in riyals unless otherwise provided under the exception below.
The exception: The government entity may specify one or more other currencies in the tender documents, subject to two conditions that appear from the text:
- That this is specified in the tender documents themselves, so the bidders know of it before submitting their bids.
- That it is with the prior approval of the Ministry, which is the Ministry of Finance under the definitions of Article 1.
This exception may be needed in works or purchases where part of the cost is in a foreign currency, but the text does not specify particular cases, and leaves that to the government entity's discretion after the Ministry's approval.
This Article relates to Article 65, which provides that the total value of the contract includes all the costs of performing it, including fees and taxes; both are in the chapter on financial consideration. If a bidder has a question about the currency of payment in a particular tender, the reference is the documents of that tender.
Practical example
A government entity put out a tender to supply imported medical devices, and specified in the tender documents, after the Ministry of Finance's prior approval, that part of the value is paid in a foreign currency. If the documents had not included that, the whole contract value would be paid in Saudi riyals.
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 64 of the Saudi Government Tenders and Procurement Law
In what currency do government entities pay contract values?
The rule is that they are paid in Saudi riyals.
May a government contract be in dollars or another currency?
Yes, if the government entity specifies that in the tender documents with the prior approval of the Ministry of Finance.
More articles on Payments, Price Adjustment and Change Orders
- Article 65
The total value of a government contract includes all the costs of performing it, including fees and taxes, and neither they nor taxes on the contractor's profits or employees' incomes may be waived or paid for them except by a special legal provision.
تكون القيمة الإجمالية للعقد شــاملة جميع تكاليف تنفيذه وفقاً لشروطه، بما في ذلك قيمة الرسوم والضرائب التي يدفعها المتعاقد، ولا يجوز الإعفاء منها أو إعفاء أرباح
- Article 66
The Article allows the government entity to pay its contractor an advance payment against a bank guarantee equal to its value, as the Regulations explain.
للجهة الحكومية أن تدفع للمتعاقد معها دفعة مقدمة مقابل ضمان بنكي مساوٍ لهذه القيمة، وفقاً لما توضحه اللائحة.
- Article 67
The Article refers the method of paying the contractor's dues from the government entity to what the Implementing Regulations of the Law explain.
تصرف مستحقات المتعاقد مع الجهة الحكومية وفقاً لما توضحه اللائحة.
- Article 68
The Article bars amending the prices of contracts and framework agreements up or down except in three specific cases, and refers the conditions and procedures to the Regulations.
لا يجوز تعديل أسعار العقود أو الاتفاقيات الإطارية بالزيادة أو النقص إلا في الحالات الآتية: 1- تغير أسعار المواد أو الخدمات الرئيسة الداخلة في بنود المنافسة والت
- Article 69
The Article allows the government entity, within its actual needs, to issue change orders increasing the contract by up to 10% of its value or reducing it by up to 20%, as the Regulations explain.
للجهة الحكومية -في حدود احتياجاتها الفعلية- إصدار أوامر تغيير بالزيادة في العقد بما لا يتجاوز (10%) من قيمته، ولها إصدار أوامر تغيير بالتخفيض بما لا يتجاوز (20%
- Article 86
The Article creates a committee, by decision of the Minister of Finance, competent over grievances of bidders and contractors and price adjustment requests; its decisions bind the entity, and the complainant provides a guarantee.
1- تكوّن بقرار من الوزير لجنة أو أكثر من المختصين، لا يقل عددهم عن خمسة ويحدد فيه رئيس اللجنة ونائبه، ويُنص في القرار على عضو احتياطي أو أكثر. ويعاد تشكيل هذه ا
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.