Bridging the Literature Gap on eProcurement Systems: Insights from Saudi Arabia’s Sustainable Development Transition

Basel Sultan (), Ibrahim Alhammad, AlAnoud AlOthman and Ghayda AlSehli
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Basel Sultan: Department of Engineering Management, College of Engineering, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi Arabia
Ibrahim Alhammad: Department of Engineering Management, College of Engineering, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi Arabia
AlAnoud AlOthman: Department of Engineering Management, College of Engineering, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi Arabia
Ghayda AlSehli: Department of Engineering Management, College of Engineering, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi Arabia

Sustainability, 2025, vol. 17, issue 8, 1-21

Abstract: This paper highlights the transition from traditional procurement systems to the newly introduced eProcurement system in Saudi Arabia, emphasizing the differences and improvements and their implications for sustainable development. The new system aims to enhance transparency, clarify purchasing methodologies, and build trust with the government through effective governance of government purchases and tender management. Guided by Royal Decree, this system aligns with the eProcurement Program to transition into digital processes for proficient bids and government purchases, contributing to more efficient and sustainable procurement practices. While some public agencies have attempted to adopt the new model contract for executing construction projects, it has faced challenges due to its lack of alignment with the best practices and sustainability considerations. The authors argue that many large projects remain exempt from this system, which poses obstacles to achieving the goals of sustainable economic development. The objective of this paper is to explore the newly revised Saudi procurement contracts in comparison with traditional public works contracts, with a focus on how they address socio-economic and environmental sustainability. The research provides an overview of various aspects related to public works contracts (PWCs) in Saudi Arabia, including framework agreements, online reverse auctions, industry localization, knowledge transfer, traditional lump sum contracts, two-phase tenders, and construction project competitions, analyzing their alignment with sustainable development goals. There is limited literature on recent models introduced by the Saudi government, but there are extensive resources on general contract law principles and international public policy. This foundation helps with understanding the legal aspects of public works contracts in Saudi Arabia, their alignment with international standards, and their implications for fostering sustainable development. By examining the literature, researchers can gain insights into the legal and policy framework governing public works contracts in Saudi Arabia and their role in promoting sustainability. The importance of this research lies in its comparative analysis, offering valuable insights into the evolution of procurement practices in Saudi Arabia and their contribution to sustainable socio-economic growth.

Keywords: eProcurement; public works contracts; Saudi; public–private; Saudi Vision 2030 (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:8:p:3429-:d:1633141

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