This week, the government published regulations governing contracts between government bodies and companies without a headquarters in the Kingdom. The new rules regularly reference a ‘relevant or related party’, meaning any agent for a company that does not have a headquarters in the Kingdom or any distributor, supplier or provider of their goods or services. Deals and purchases of less than SR1 million ($266,063) are excluded from the rules. This includes business and purchases that are carried out outside the Kingdom. The minister of finance may, in accordance with the requirements of the public interest, amend this level or temporarily suspend or cancel the exception. It is important to note that such controls do not prevent companies without a headquarters in the Kingdom, or any related party, from submitting offers for any public competition. This is provided that these entities do not accept what those companies or related parties submit, except in one of the following two cases; if there is no more than one technical offer accepted, or if the offer submitted by the foreign company is determined to be the best. There are exceptions in other situations. The first is the absence of more than one qualified competitor to carry out the business or secure the required purchases, other than companies that do not have a regional headquarters in the Kingdom or related parties. The second is the existence of emergency situations that can only be dealt with by inviting companies, or related parties, that do not have a regional headquarters in the Kingdom. Such emergencies include serious and unexpected threats to public safety, security or health. A government agency must prepare a report that includes the reasons that prompted them to form the contract with such a company. A copy of the report must be provided to the General Auditing Bureau and the Authority for Spending Efficiency and Government Projects within a period not exceeding 30 business days from the date of signing the contract. • Dimah Talal Al-Sharif is a Saudi legal consultant, head of the health law department at the law firm of Majed Garoub and a member of the International Association of Lawyers. Twitter: @dimah_alsharif