Article 90 of the Saudi Government Tenders and Procurement Law

This Article sets a rule protecting public funds and the integrity of contracting: contracting is directly with those authorized to work.

Three provisions:

1. Direct contracting: the government entity contracts directly with the party authorized to work in the field required, not with a party who acts as an intermediary between it and that party.
2. Ban on brokerage: brokerage in contracting is not permitted; a person may not come between the government entity and the actual performer or supplier as a broker.
3. Exception for the approved distributor and agent: a distributor or agent approved by the original producer is not considered a broker. If the entity contracts with the approved agent of a manufacturer, this is a permitted contract and does not fall within the prohibited brokerage.

Note that the exception depends on the distributor or agent being approved by the original producer; on the apparent wording of the text, it does not cover someone who sells the product without approval from its producer.

The Article does not state the penalty for violating the ban on brokerage, and does not define "those authorized to work" in detail.

The Article follows Article 89, which allows government entities to contract among themselves by direct agreement, and precedes Article 91, which requires entities to use the approved forms for contracts, tender documents, prequalification and performance evaluation.

A person who wishes to contract with a government entity through an arrangement involving a third party would do well to consult a lawyer specialized in government contracts to confirm the arrangement is sound.