Find a Lawyer
Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.
Find out more
Saudi Arabia: Transformation of the Kingdom
Welcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.
Read the edition
A complete spectrum of legal services across jurisdictions in the Middle East & North Africa.
Abu Dhabi Executive Committee Circular No. 1 of 2019 – Concerning the Payment of Entitlements of Contractors and Suppliers
The Abu Dhabi Executive Committee has issued an Executive Council Circular which signifies an important new step in regulating the payment process under Government contracts. Under Circular No. (1) of 2019, dated 26 March (“Circular”), Government Bodies and companies are now required to observe the following requirements:
- Payment of all entitlements to contractors and suppliers within 30 days as of the date of receipt of the relevant invoices.
- The inclusion of a clause in their contracts with contractors and suppliers that stipulates the obligation of contractors and suppliers to pay the dues of subcontractors and sub-suppliers within 30 days as of the date of receiving their entitlements from the Government Bodies and companies.
- Amending all valid contracts with contractors and suppliers as stipulated above.
- In the event of a disagreement between the parties on part of the amounts due, the undisputed amount shall be paid. This shall not be regarded as a waiver of the right of any of the parties until an agreement is made on the remaining amount according to the contract.
The above requirements have been introduced with retrospective effect and therefore must be reflected in all contracts previously entered into with contractors and suppliers prior to the date of issue of the Circular, in addition to all new contracts.
This recent announcement comes at a time when contractors and suppliers in the UAE are increasingly feeling the strain of reduced liquidity and cash flow, in part due to reduced economic growth as a result of lower oil prices.
Our Construction & Infrastructure team regularly advise on all elements of the construction procurement process. If you have any questions or would like further information, please don’t hesitate to contact our team:
Euan Lloyd
Senior Counsel, Construction & Infrastructure
e.lloyd@tamimi.com
Leith Al-Ali
Associate, Construction & Infrastructure
l.alali@tamimi.com
Spread the news
Stay updated
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.
