Companies Classification System in the Kingdom of Saudi Arabia

Saudi Arabia is one of the fastest-growing economies in the region, experiencing continuous development across various economic sectors. In light of this growth, company classification has become essential to regulate the market and ensure the quality of projects, products, and services.

What is the classification of companies in Saudi Arabia?

The classification of companies in the Kingdom of Saudi Arabia is a system approved by government agencies. It aims to evaluate and classify companies based on specific criteria, such as financial, administrative, and technical capabilities, and a track record of previous achievements.

Companies are awarded a classification certificate reflecting their ability to implement government and private projects within specific categories, depending on the commercial, industrial, or service sector in which the company operates. This facilitates the selection process for contractors and suppliers to implement projects.

Historical overview

The Kingdom of Saudi Arabia began implementing a company classification system several decades ago to support its strategy of regulating the labor market and ensuring high-quality project implementation. The system has evolved over the years to include various sectors, such as contracting, services, engineering consulting, and procurement. The classification system is subject to continuous updating to keep pace with economic and technological developments and achieve the Kingdom’s Vision 2030, which aims to improve the investment environment and enhance transparency and efficiency in project implementation.

The importance of company classification

Business classification offers numerous benefits to both companies and the government, most notably:

Quality assurance: The classification helps improve the quality of projects and services provided by companies.
Enhancing competitiveness: The classification creates a fair competitive environment among companies, stimulating innovation and development.
Improving investment opportunities: The classification enables companies to obtain government contracts and major investment projects.
Achieving transparency: The classification of companies ensures clarity in evaluation criteria and reduces the risks associated with selecting unqualified companies, which can lead to project failure.
Improving market efficiency: The classification contributes to regulating the labor market and achieving sustainable development in the Kingdom.

Classification criteria

Companies are classified according to a set of specific criteria approved by the competent authorities, including:

Credit Rating: This includes the company’s financial capacity, capital, and audited financial statements.
Administrative Criteria: This includes an assessment of the company’s administrative structure, governance system, management systems, and quality.
Technical Rating: This includes the company’s experience in the field, the experience of the work team, previous projects, and the level of technical performance.
Compliance with Laws and Regulations: This includes ensuring the company’s compliance with government laws and regulations.
Commercial Register and Record of Achievements: This includes verifying previous projects and the company’s commitment to their successful implementation.

How can we help you obtain a classification certificate?

If you are a business owner and would like to obtain a classification certificate in the Kingdom of Saudi Arabia, we are here to assist you throughout the process, from the initial assessment to obtaining the approved classification certificate. We offer comprehensive consulting services, including:

Preparing the Required Documents: We help you prepare and compile all the documents required to obtain the classification.
Company Performance Analysis: We assess your company’s situation and provide advice to improve the required standards.
Registration and Application: We help you submit the classification application and deal with the relevant authorities.
Follow-up and Support: We follow up with the relevant authorities to ensure you obtain the certificate as quickly as possible.

If you need any more information or support regarding your company’s classification process, our team of experts and engineers is ready to help. We aim to provide the best services to ensure you obtain the best rating score that reflects your company’s potential, thus securing the best investment opportunities in the Kingdom of Saudi Arabia.