Saudi Gazette, 6 September 2025: Saudi Arabia’s Ministry of Municipalities and Housing has introduced significant amendments to its Contractors Classification Law (Saudi Arabia Cabinet Decision No. 49/1443), establishing new guidelines for project division and classification procedures.

Under the revised regulations, contractors can now divide projects worth SR600 million or more, provided each divided portion maintains a minimum value of SR75 million. The ministry has also implemented strict timeframes for administrative processes, requiring classification decisions within 60 working days and certificate extensions within 10 working days.

The amendments outline six specific circumstances where contractor experience will not be recognised, including cases where contract signing predates commercial registration or when projects fall outside classification scope. Additional exclusions apply to withdrawn projects, unverified contractor involvement, unauthorised subcontracting, and incomplete documentation.

Classification certificates will now be issued electronically, with validity verification available through the ministry’s website. Contractors receive a 90-day window to request grade adjustments or activity modifications after certificate issuance, and certificates can be extended once for 90 days.

The regulations require contractors to update their commercial register information within 30 days of any legal status changes. Appeals against classification decisions must be filed with the competent committee within 60 days, with further appeals possible through the Administrative Court.

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