"Municipality and Housing": The initiative to update financial limits contributes to aligning contractors' capabilities with the projects offered.

Monday 08 June 2026
"البلدية والإسكان": مبادرة تحديث الحدود المالية تسهم في تكافئ قدرات المقاولين مع المشاريع المطروحة

The Ministry of Municipal and Rural Affairs and Housing confirmed that the initiative for a mechanism to periodically update financial limits, which it launched as part of its contribution to the Coordinating Committee for the Development of the Contracting Sector, is in line with market conditions, and aims to achieve its strategic goals of developing policies to ensure that contractors’ capabilities are equal to the projects offered in fair competitions.

The ministry explained that the initiative contributes to improving the performance of contractors and increasing governance in their work, noting that it added 498 activities subject to classification through the initiative, through the National Guide to Economic Activities within 6 sectors in contracting.

The initiative focuses on studying market conditions to determine the needs for updating financial boundaries, holding workshops with relevant parties to gather their views, and launching awareness and advertising campaigns to clarify the changes, in order to ensure that the capabilities of contractors are commensurate with the projects being offered.

The Minister of Municipal and Rural Affairs and Housing, Mr. Majid bin Abdullah Al-Hogail, chairs the Coordinating Committee for the Development of the Contracting Sector, which includes, in addition to the Ministry of Municipal and Rural Affairs and Housing, the following: (Ministry of Commerce, Ministry of Finance, Ministry of Human Resources and Social Development, Ministry of Investment, Ministry of Economy and Planning, Government Spending and Projects Efficiency Authority, Saudi Contractors Authority, and Saudi Council of Engineers).

The committee is working to improve procedures and develop mechanisms and systems that are used in the contracting sector, to raise the level of governance, increase transparency, reach a high degree of efficiency in investment attractiveness, and achieve a high level of participation of the sector in the national economy.

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The Kingdom of Saudi Arabia