Procurement Glossary
Terms, acronyms, and concepts used in KSA industrial procurement. From CR to ZATCA.
CR (Commercial Registration)
Official business registration certificate issued by the Saudi Ministry of Commerce. Required for all commercial entities operating in KSA. Verified via Maroof.
ERP
Enterprise Resource Planning. Integrated software system for managing business processes. In procurement context: SAP, Oracle, Odoo, Microsoft Dynamics 365.
Etimad
Saudi government procurement platform. Used for government tenders and contractor verification.
GCC
Gulf Cooperation Council. Six member states: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman.
IBAN
International Bank Account Number. Required for vendor payment setup in KSA.
Maroof
Saudi Ministry of Commerce platform for verifying business legitimacy and commercial registration status.
MCP
Model Context Protocol. Standard API protocol used by Sila for enterprise system integrations.
MLSD
Ministry of Labor and Social Development. Oversees Saudization and Nitaqat compliance.
MRO
Maintenance, Repair, and Operations. Category of procurement covering routine operational supplies and spare parts.
Nitaqat
Saudi workforce localization program. Classifies companies by their ratio of Saudi to non-Saudi employees. Green, platinum, red, yellow zones.
PO (Purchase Order)
Formal document from buyer to supplier authorizing a purchase. Specifies items, quantities, prices, delivery terms, and payment conditions.
RFQ (Request for Quotation)
Formal request sent to suppliers asking for pricing and terms for specified goods or services.
SAR
Saudi Riyal. Official currency of Saudi Arabia. 1 USD = approximately 3.75 SAR (fixed peg).
SASO
Saudi Standards, Metrology and Quality Organization. Issues product quality and safety certifications required for goods sold in KSA.
Saudization
Policy requiring companies in Saudi Arabia to employ a certain percentage of Saudi nationals. Tracked via Nitaqat program.
Vision 2030
Saudi Arabia's strategic framework for economic diversification and development. Driving massive infrastructure, industrial, and technology investments.
Zakat
Islamic tax obligation. Zakat certificate issued by ZATCA is required for vendor compliance in KSA.
ZATCA
Zakat, Tax and Customs Authority. Saudi government body responsible for VAT, Zakat, customs, and e-invoicing compliance.
Start with a free process audit
On-site. No obligation. No software to install. We document your procurement workflow and deliver a prioritized automation roadmap.