The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
In early 2022, the Ministry of Investment Saudi Arabia (“MISA”), together with the Royal Commission for Riyadh City implemented the Regional Headquarters (“RHQ”) Programme, with the primary objective of transforming the Kingdom of Saudi Arabia (“KSA”) into a major global economy – part of the country’s impressive Vision 2030 Initiative.
The RHQ Programme is open to companies operating across all industries/sectors and KSA has seen a significant interest in companies seeking to establish their RHQ in KSA.
Al Tamimi & Company has previously issued a briefing on the structure of the RHQ Programme, proposed benefits and overall implications.
By participating in the RHQ Programme, Multinational Groups (being a group of entities operating in one or more jurisdictions with its foreign parent/headquarters outside of the Middle East North Africa Region) will obtain a number of key benefits. Perhaps the most significant benefit/privilege however, would be the ability of the Multinational Group to be eligible for and participate in contracts with Saudi Government Agencies (including Ministries, Authorities, Government Bodies etc.).
There was initially some uncertainty as to how this would apply in practice, but in a very recent and important development, the Council of Ministers (by Royal Ascent) has passed a Resolution No. 377, dated 03/06/1444H (corresponding to 27/12/2022G), which provides and sets out the “Guidelines for Government Contracts with Companies and Related Parties Without Regional Headquarters in KSA” (“ Guidelines”).
Some key features/provisions of the Guidelines include the following:
1. Government Agencies (in carrying out their works and procurements), may not contract companies or any related party that do not have their respective RHQ in KSA, except in the following limited circumstances:
2. Multinational Groups (or related parties) without their RHQ in KSA are not precluded from submitting bids for any public tender put forward by Government Agencies, provided that such Agencies only accept these bids in either of the following cases:
3. Government Agencies are only permitted to invite Multinational Groups (or related parties) that do not have their RHQ in KSA to participate in limited tenders in either of the following cases:
4. Government Agencies are only permitted to invite Multinational Groups (or related parties) to participate in direct purchases in either of the following two cases:
5. A Committee (reporting to the Ministry of Finance) will be formed to consider any applications for exemptions brought by the relevant Government Agency.
For further guidance please contact our Saudi based Corporate Structuring team who will be able to assist and advise on all of aspects relating to this update.