Korean Contractors in Saudi Arabia: Giga-Projects & EPC Guide

Red Dragon Office·Updated 2026-10-11

Few foreign construction industries have a longer story in Saudi Arabia than Korea's. Korean contractors have been part of the Kingdom's development since at least the 1970s, when the first wave of large infrastructure programmes brought Korean crews to ports, roads and housing projects. That heritage still opens doors, but the rules of the game have changed. This article focuses on what Korean EPC contractors, and the subcontractors and suppliers who follow them, need to know about the current market. For the general steps of setting up a company, see our guide for Korean companies in Saudi Arabia.

From the 1970s boom to today's pipeline

The early Korean presence is often linked to landmark projects of the oil-boom era, such as the Jubail industrial harbour, and to the many Korean engineers and workers who lived on Saudi sites at the time. Over the following decades, Korean firms built a strong reputation in oil, gas, petrochemical and power EPC work, frequently for clients such as Saudi Aramco and SABIC, as well as in utilities and public infrastructure.

Under Vision 2030 the pipeline has broadened. Alongside hydrocarbons, it now includes giga-projects, tourism destinations, housing, transport, water, renewable energy and digital infrastructure. At the same time, several large projects have been re-phased or re-scoped in public announcements, so contractors should track each client's current priorities rather than headline project values. Our overview of Saudi giga-projects explains the main developers.

Where Korean contractors typically compete

• Energy and petrochemicals: gas processing, refining, chemicals and related utilities, where Korean EPC experience is well recognised.
• Power and water: generation, transmission, desalination and treatment plants, often procured under utility or PPP structures.
• Giga-projects and destinations: tunnels, civil works, hospitality, modular housing and infrastructure packages for developers backed by the Public Investment Fund (PIF).
• Transport and logistics: rail, metro, ports, airports and logistics zones.
• Event and urban infrastructure: venues, housing and city services linked to major events such as Expo 2030 and the 2034 FIFA World Cup. See our article on these events.
• Industrial facilities: factories and plants in industrial cities and special economic zones.

Prequalification: getting on the client's list

Large Saudi clients usually run their own vendor and contractor prequalification before they invite bids. Aramco, utilities, PIF companies and giga-project developers each maintain registration systems and evaluation criteria, and these are separate from government classification. Being prequalified with one client does not automatically carry over to another.

Typical areas of assessment include:

• Audited financial statements and evidence of financial capacity
• Comparable project references, ideally in the Gulf region
• Health, safety and environment (HSE) systems and records
• Quality management certifications and organisation charts
• A Saudi commercial registration or a clear plan for local presence
• A local content or in-Kingdom value plan, where the client requires one

Many clients publish requirements through their supplier portals, and these are updated from time to time. Our supplier and vendor registration page outlines how this preparation usually works.

Contractor classification for public projects

For government projects, contractors generally need a classification certificate under the Contractor Classification Law, administered by the Ministry of Municipal and Rural Affairs and Housing (now commonly called the Ministry of Municipalities and Housing). Classification sets the fields of work and the grade, which in turn limits the size of projects a contractor can take on.

Under the law, a contractor licensed under the foreign investment framework is generally classified using the same procedures as Saudi contractors. The implementing regulations have been amended in recent years, including provisions on electronic certificates with a fixed validity period, and recent drafts have addressed when a foreign parent company's experience can be relied on. Because the details change, confirm the current rules before you plan a bid. See our contractor classification service and the contracting sector guide.

Local content and in-Kingdom value

Local content has become a commercial factor, not just a compliance item. The Local Content and Government Procurement Authority (LCGPA) sets local content policies for government procurement, which can include price preferences, mandatory local products and local content targets in certain tenders. Aramco runs its own In-Kingdom Total Value Add (IKTVA) programme, and other major clients use similar scoring.

For Korean EPCs this usually means planning Saudi suppliers, local fabrication, Saudi staff training and in-Kingdom spend from the bid stage. A local content certificate may be requested, and our local content guide explains how it is usually measured.

Saudization on site

Every Saudi entity, including a project company or branch, falls under the Nitaqat programme of the Ministry of Human Resources and Social Development (HRSD). Required Saudi ratios depend on the activity and company size, and they change over time. Work visas, contracts and transfers are handled through Qiwa, social insurance through GOSI, and wage payments are monitored through Mudad and the wage protection system.

Large sites need a staffing plan that covers engineers, supervisors, HSE officers, administrative staff and third-country workers. Falling into a low Nitaqat band can restrict new visas at exactly the moment a project ramps up. Our Saudization guide and accounting and payroll service cover the basics.

Joint ventures with Saudi partners

Many Korean contractors work with Saudi partners to combine international EPC capability with local classification, relationships, workforce and supply chains. The right structure depends on the client, the contract and how long you plan to stay.

Whatever the model, carry out due diligence on the partner's classification, Nitaqat status, financial standing and track record. Our local partner guide lists the usual questions.

Payment and contract risk awareness

Saudi projects can be rewarding, but cash flow and contract terms deserve attention from day one. Common points to review with your legal and finance teams include:

• Payment milestones, certification periods and retention, and what happens if payments are delayed
• Advance payment and performance bonds, usually issued or confirmed through banks in Saudi Arabia
• Variation, suspension and re-phasing clauses, which matter when project scopes change
• Whether the contract follows a FIDIC-based form or a bespoke client template, and the Government Tenders and Procurement Law for public work
• Dispute resolution: Saudi courts or arbitration, for example through the Saudi Center for Commercial Arbitration (SCCA)
• Tax: VAT, ZATCA e-invoicing and possible withholding tax on payments to non-resident parties

This is general awareness, not legal advice. Public tenders are typically published through the Etimad platform, and invoices issued by your Saudi entity must follow the ZATCA e-invoicing rules.

SME subcontractors and suppliers following the big EPCs

When a Korean EPC wins a large package, a network of Korean SMEs often follows: MEP specialists, steel structure fabricators, equipment and materials suppliers, inspection firms and IT providers. They face many of the same requirements on a smaller scale.

• Register on the EPC's and the end client's vendor lists, which are often separate
• Decide between direct export, a Saudi distributor or agent, or your own Saudi entity
• Check product conformity through SASO and the SABER platform before shipment
• Plan for local content scoring, since main contractors often pass targets down the chain
• Agree payment terms that reflect your position in the chain, and avoid unsecured long credit

Some SMEs start with project-based work under the EPC's umbrella and later set up a Saudi company or register a commercial agency to serve other clients.

Prepare an English company profile, audited accounts, key certificates and project references in one package, with certified Arabic translation where required. The same file is reused for MISA, classification, prequalification and partner discussions, and preparing it early often saves weeks.

How RDO can help

RDO handles the Saudi-side administrative work for contractors and suppliers: the MISA licence and commercial registration, preparation of contractor classification and vendor registration files, Qiwa and GOSI setup, and ZATCA registration. We coordinate with the relevant authorities and follow up on each application. Communication with Korean teams is in English, with certified translation of documents when required. Contact us on WhatsApp to discuss your project.

Frequently asked questions