- Government Tenders Guide 2026: How to Leverage a 1.3 Trillion Riyal Budget?

To understand the 2026 budget in a strategic way that helps you maximize the benefit from the massive opportunities available via the "Etimad" platform, it is not enough to look at aggregate numbers only. You must dive into the details of expenditure distribution, understand priority sectors focused on by the state, and strategic directions of government procurement. This detailed guide is designed specifically for investors, contractors, and suppliers to set their business compass in 2026.

1. Public Spending Volume and Available Opportunities: Reading the Numbers

Total expenditures for the 2026 budget are estimated at about SAR 1,313 billion. For companies operating in the government tenders market, this figure must be analyzed from two main angles to understand the nature of opportunities:

• Capital Expenditure (CAPEX):
  • Estimated at about SAR 162 billion.
  • What does this mean for you? These funds are allocated for new projects, infrastructure, major construction, and site preparation. If you work in contracting, engineering, or heavy supplies, this is your share of the pie. These expenditures include road projects, government buildings, new hospitals, and industrial city infrastructure.
• Operational Expenditure (OPEX - Goods and Services):
  • Estimated at about SAR 247 billion.
  • What does this mean for you? This is the "daily engine" of opportunities. It includes operation and maintenance contracts, cleaning, catering, tech services, consulting, and consumable supplies. These contracts are characterized by being periodic and renewable, tendered by government entities regularly and intensively via Etimad platform, providing stable cash flows for winning companies.

2. Sectoral Distribution: Where are Budget and Tenders Concentrated?

Budget allocations are distributed across vital sectors, and knowing the allocation size for each sector gives you an accurate indicator of entities issuing the most tenders and expected contract volumes:

1. Health and Social Development (SAR 259 billion - Largest Sector):
   • Opportunities: Constructing and equipping hospitals and health centers, medical maintenance contracts, supplying medicines and medical devices, catering services for hospitals, and digital health solutions.
   • Focus: Quality, digitization, and expanding health coverage.
2. Education (SAR 202 billion):
   • Opportunities: Building and maintaining schools and universities, supplying educational equipment and labs, school transport services, operating canteens, and R&D projects.
   • Focus: Modern educational environment, and advanced curricula.
3. Municipal Services (SAR 72 billion):
   • Opportunities: Asphalting and lighting projects, general city cleaning contracts, operation and maintenance of parks, flood drainage projects, and urban landscape development (city humanization).
   • Focus: Quality of life, and improving general city appearance.
4. Economic Resources (SAR 92 billion):
   • Opportunities: Water and sewage projects, renewable energy, tourism and events, environmental and agricultural services, and industry support.
   • Focus: Sustainability, food and water security.
5. Infrastructure and Transport (SAR 35 billion):
   • Opportunities: Constructing and maintaining roads and main axes, developing airports and ports, logistics services, and telecom and digital infrastructure projects.
   • Focus: Logistic connectivity, and robust infrastructure.

3. Opportunity Details in Key Sectors (Digital and Construction)

These two sectors are the main and most active drivers for government tenders in the 2026 budget, given the volume of projects and transformation taking place within them.

First: Opportunities in Digital and Tech Sector

The budget targets raising the telecom and tech market volume to SAR 199 billion. This is not just a number, but a massive opportunity for tech companies. Opportunities focus on:

• Automating Government and Judicial Services: Expanding projects like "Virtual Court", automating execution and eviction operations, and digitizing government documents and archives. These projects require advanced software solutions, content management systems, and cybersecurity services.
• Developing National Platforms and Apps: Working on raising efficiency and services of giant government apps ("Tawakkalna", "Absher", "Sehhaty"), and launching new platforms like unified "Nusuk" card to serve 20 million pilgrims, requiring expertise in app development and user experience (UX/UI).
• Artificial Intelligence and Data Analysis: There is increasing demand for AI solutions, such as tech lab projects in media, smart chatbots for platforms like "Etimad" for customer service, and big data analysis solutions to support decision making.
• Digital Infrastructure: Supplying servers, data centers, networks, and cloud computing services.

Second: Opportunities in Construction and Infrastructure Sector

Despite digital transformation, "Construction" remains an integral part of the budget, especially with major projects:

• Housing and Real Estate: Injecting 80,000 housing units and developed land with investments nearing SAR 70 billion. Opportunities for real estate developers, residential contracting companies, and building material suppliers.
• Health Facilities: Projects to construct 6 new hospitals with 1,100 bed capacity in multiple regions (Hail, Jazan, etc.). Opportunities for contractors specialized in medical facilities and complex electromechanical systems.
• Transport and Airports: Launching terminals at Jouf, Jazan, and Qassim airports, and developing Riyadh road network by over 500 km. Opportunities for road companies, steel construction, and airport systems.
• Environmental and Entertainment Projects: Qualitative projects like "Green Riyadh" targeting planting 7.5 million trees (opportunities for agriculture, irrigation, and landscaping companies), and completing major sports stadiums (like King Fahd Stadium).

4. Strategic Trends to Boost Your Winning Chances

In 2026, "Lowest Price" will not be the only criterion for winning. Your company strategy must align with state directions:

• Local Content: This is the "Winning Card". The state aims to raise private sector contribution and its local content. Obtaining a high percentage "Local Content Certificate", and preferring national products in your offers, gives you a price preference of up to 10% in evaluation, and may be a mandatory requirement in some tenders. Invest in raising your local content ratio.
• Supporting SMEs: There are strong government initiatives to enhance the role of these enterprises and facilitate their entry into supply chains. If you are a small enterprise, benefit from "Small Enterprise Preference" and exemptions from initial bank guarantees. If you are a large company, ensure involving SMEs as subcontractors to enhance your file.
• Financial and Technical Efficiency: Government entities focus on "Spending Efficiency". Offer innovative solutions that save money in the long run (like energy efficiency solutions, or systems reducing operating costs) to distinguish your offer from traditional competitors.
• Registration and Pre-qualification: Ensure updating your data in "Etimad" platform, and obtaining necessary classifications and qualifications in your field (like contractor classification, or real estate developer qualification) before major projects are released to be ready for competition immediately.

Conclusion: Roadmap to Success

The 2026 budget is not just accounting numbers, but a clear roadmap for upcoming projects and opportunities. The message is clear: Spending continues strongly, but the focus shifts towards Quality, Efficiency, Local Content, and Technology. Companies preparing now, building their capabilities in these areas, and understanding budget priorities, will be most likely to win "Etimad" contracts this year and capture a share of the 1.3 trillion riyals.