New tech company ranking: Smart standards and strict field monitoring
In a strategic move aimed at regulating the digital services market in Saudi Arabia, the Digital Government Authority launched a new guide for classifying technology companies, based on precise criteria and direct electronic linking mechanisms that immediately affect the companies’ position in the market based on their actual performance.
The context of digital transformation and Vision 2030
This regulatory move is an integral part of the Kingdom's Vision 2030 objectives, which prioritizes digital transformation to enhance the efficiency of government operations. The Digital Government Authority plays a pivotal role in this context, striving to ensure the quality of services provided to government entities and guaranteeing that contracting companies possess the necessary technical and financial capabilities to execute major projects, thereby contributing to raising the level of digital maturity in the public sector.
The “Sanad” tool and artificial intelligence
In its latest version, the Authority introduced the "Sanad Classification Assistant" tool, powered by artificial intelligence, to enable establishments to understand the precise classification criteria and complete registration and evaluation procedures smoothly and with unprecedented speed. The Authority also ensured unified communication channels to guarantee a seamless user experience, providing comprehensive technical and guidance support through the "Amer" center and the Digital Government Cluster (DGC) platform, to help contractors overcome any obstacles they may encounter during the classification process.
Classification journey and technical standards
The new guide covers all aspects of the process, from objectives and procedures to final deliverables, specifically targeting private sector companies seeking to provide the government sector with world-class technology services. The contractor's journey begins with obtaining a valid commercial registration and operating licenses from the Communications and Information Technology Commission, followed by registration on the digital government portal and linking the company's activities to the approved digital classification.
Applicants undergo a technical evaluation using a comprehensive questionnaire that measures five key aspects, including technical expertise, corporate governance, level of innovation and growth, compliance, and the size of the resources available to the organization.
Governmental integration and classification levels
This process culminates in the integration of the Authority's technical classification with the Ministry of Municipalities and Housing's financial classification to issue the "General Classification Certificate," which accurately reflects the contractor's capabilities and financial and technical efficiency. The Authority has established four hierarchical classification levels, at the top being the "Platinum Contractor," which requires excellence in research and development and the availability of local resources with a minimum passing score of 88 percent. This is followed by the "Gold Contractor" category, dedicated to implementation and integration services with a 70 percent passing score; then the "Silver Contractor" category for support services with a 52 percent passing score; and finally, the "Starter Contractor" category for sales and distribution with a 40 percent passing score.
Field monitoring and its economic impact
A key element of the new system is the strict emphasis on the continuous monitoring of contractor performance in government projects, with periodic evaluation results directly impacting technical classification. This automated system means that any on-site failure could lead to an immediate downgrade of the company's classification, thus requiring companies to maintain the quality of their services to ensure their continued eligibility.
The classification certificate is valid for 12 months, allowing for two data updates and rating improvements between the fourth and ninth months, with final renewal taking place in the last three months of the validity period. This system is expected to enhance competitiveness in the Saudi market and encourage companies to invest in innovation and local content to maintain their high rankings.
