Saudi Gazette, 6 January 2024: Saudi Arabia’s Municipal, Rural Affairs and Housing Minister has approved amendments to the Implementing Regulations to the Contractors Classification Law.

Saudi Arabia Ministerial Decision No. 4500465523/1445 repeals and replaces Saudi Arabia Ministerial Decision No. 4300274450/1443.

Under Saudi Arabia Ministerial Decision No. 4500465523/1445, a classification certificate will be issued electronically and will be valid for two years.

Project owners will have to verify the authenticity of these certificates through the Ministry’s website.

Article 4 of Saudi Arabia Ministerial Decision No. 4500465523/1445 specifies the areas, activities and grades of classification will be determined, modified, and updated by a Ministerial Decision.

The classification will cover various sectors including construction and building, operations and maintenance services, telecommunications and information technology, nutrition and catering, exhibitions and conferences and real estate development.

These fields and activities will align with the National Guide for Economic Activities.

The contractors’ classification certificate will be issued for the relevant field and activity or fields and activities along with the deserved grade, based on available information, data, and the points achieved in the evaluation.

Contractors will have to maintain commercial books and documents that verify the accuracy of their balance sheets and profit and loss accounts for the latest year.

They will have to be certified by a licensed accountant and filed in the programme.

These records should be well-organised and in Arabic. Contractors operating in the Kingdom must adhere to the terms and conditions stipulated in the Commercial Books Law

Article 9 of Saudi Arabia Ministerial Decision No. 4500465523/1445 states that contractors wanting to reclassify can submit a request to the agency within 90 days before their current certificate expires.

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