Saudi finance ministry boosts Kingdom’s business environment with new law

The legislation comes as the Kingdom continues to work towards its Vision 2030. (File/AFP)
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Updated 25 December 2019

Saudi finance ministry boosts Kingdom’s business environment with new law

  • New government tender and procurement law
  • Legislation focuses on local businesses, small-to medium-enterprises and publicly listed companies

DUBAI: Saudi Arabia’s Ministry of Finance (MoF) has implemented a new government tender and procurement law that promotes the local business environment, as well as improve efficiencies in government spending and financial planning.

The legislation, which comes as the Kingdom continues to work towards its Vision 2030, puts focus on local businesses, small-to medium-enterprises (SMEs), and publicly listed companies – granting them preference in public tenders.

The law also appoints the Center of Spending Efficiency (CSE) with functions including finalizing framework agreements on procurements, reviewing feasibility studies, and developing training programs for government employees.

Among the highlights of the new law is the additional requirement government agencies to publish their plans and procurements into an online platform called “Etimad” to ensure quality in projects and services.

The online system would also “introduce mechanisms and committees to consider complaints, grievances, violations and solving disputes throughout all stages of tendering and contracting,” according to a release by the MoF.

“The new law aims to regulate and facilitate government procurement, prevent exploitation of influence and impact of personal interests, achieving the best value of public funds.”

It was implemented to promote “integrity, transparency, achieving equality, providing fair treatment to bidders and promoting economic development.”


Libya’s NOC says production to rise as it seeks to revive oil industry

Updated 22 September 2020

Libya’s NOC says production to rise as it seeks to revive oil industry

  • Libya produced around 1.2 million bpd – over 1 percent of global production – before the blockade
  • Libya’s return to the oil market is sustainable

LONDON: Libya’s National Oil Company said it expected oil production to rise to 260,000 barrels per day (bpd) next week, as the OPEC member looks to revive its oil industry, crippled by a blockade since January.
Oil prices fell around 5 percent on Monday, partly due to the potential return of Libyan barrels to a market that’s already grappling with the prospect of collapsing demand from rising coronavirus cases.
Libya produced around 1.2 million bpd — over 1 percent of global production — before the blockade, which slashed the OPEC member’s output to around 100,000 bpd.
NOC, in a statement late on Monday, said it is preparing to resume exports from “secure ports” with oil tankers expected to begin arriving from Wednesday to load crude in storage over the next 72 hours.
As an initial step, exports are set to resume from the Marsa El Hariga and Brega oil terminals, it said.
The Marlin Shikoku tanker is making its way to Hariga where it is expected to load a cargo for trader Unipec, according to shipping data and traders.
Eastern Libyan commander Khalifa Haftar said last week his forces would lift their eight-month blockade of oil exports.
NOC insists it will only resume oil operations at facilities devoid of military presence.
Nearly a decade after rebel fighters backed by NATO air strikes overthrew dictator Muammar Qaddafi, Libya remains in chaos, with no central government.
The unrest has battered its oil industry, slashing production capacity down from 1.6 million bpd.
Goldman Sachs said Libya’s return should not derail the oil market’s recovery, with an upside risk to production likely to be offset by higher compliance with production cuts from other OPEC members.
“We see both logistical and political risks to a fast and sustainable increase in production,” the bank said. It expects a 400,000 bpd increase in Libyan production by December.
The Organization of the Petroleum Exporting Countries and allies led by Russia, are closely watching the Libya situation, waiting to see if this time Libya’s return to the oil market is sustainable, sources told Reuters.