RFQ Process: How UAE and Saudi Businesses Should Request Quotes

The RFQ process has five steps: write one clear request, send it to several suppliers at once, convert every reply into the same terms, check the supplier behind the best one, and turn it into a purchase order that matches what was quoted. Most buying mistakes in UAE and Saudi trading businesses happen at step three, when quotes in different currencies, Incoterms and minimum orders are compared on unit price alone.

This guide walks through each step, with a comparison table you can reuse.

What an RFQ is, and when to use one

A request for quotation (RFQ) asks suppliers for a price on something you have already specified: a product, quantity, delivery place and date. Use it when you know what you want and the main question is who supplies it best.

If you are still working out what you need, start with a request for information (RFI). If you want suppliers to propose a solution, use a request for proposal (RFP).

Step 1: Write the RFQ

A good RFQ makes replies comparable before they arrive. Include:

1. Your reference and deadline. An RFQ number and a reply-by date and time (state Gulf Standard Time or Arabia Standard Time).
2. Specification. Product description, model or drawing, materials, standards, packaging and labelling. For goods going into Saudi Arabia, say which SASO technical regulation applies, if any.
3. Quantity. The quantity for this order, and expected annual volume if you want tiered pricing.
4. Delivery terms. The Incoterm, named place and version you want quoted, for example "CIF Jebel Ali, Incoterms® 2020" or "DAP our warehouse, Riyadh".
5. Required delivery date. When the goods must arrive, not when they ship.
6. Commercial terms. The currency you want (AED, SAR or USD), your preferred payment terms, and how long the quote must stay valid.
7. Documents. What must come with the goods: commercial invoice, packing list, certificate of origin, test reports, and SABER certificates for regulated products into KSA.
8. Reply format. A table with the fields you will compare, so every supplier answers in the same order.

Asking every supplier to quote on the same Incoterm is the single biggest time saver. The ICC recommends contracts refer to the Incoterms® 2020 rules, so name the version too.

Step 2: Send it to the right suppliers

Send the same RFQ to every supplier at the same time, with the same deadline. Keep the list to suppliers who can actually fill the order. That means the right product range, capacity and export experience to the GCC.

Answer clarification questions in writing and share the answer with every supplier. If one supplier learns something the others do not, the comparison is no longer fair.

Step 3: Compare quotes like-for-like

Unit price is only one line. Before you compare, bring every quote to the same basis: landed cost at your warehouse, in one currency.

What to normalise

• Incoterm. An EXW quote leaves you to pay export, freight, insurance, import duty and delivery. A CIF Jebel Ali quote includes freight and insurance to the port. A DDP quote should include everything, including duty and VAT.
• Customs duty. In the UAE, duty is generally 5% of the CIF value for goods from outside the GCC (Dubai Customs). In Saudi Arabia, the rate depends on the HS code in ZATCA's tariff. Duty is charged on CIF whatever the supplier's Incoterm, so add freight and insurance to an EXW or FOB price before working out duty.
• Currency. Convert at one rate, on one date, for all quotes.
• MOQ. If the minimum order is above what you need, the extra stock is part of the cost.
• Lead time. A cheaper quote that arrives three weeks late may cost more in lost sales.
• Payment terms. A 30% deposit and 70% before shipment ties up more cash than open account terms.
• Validity. A quote that expires before you can approve it is not a real option.

A hypothetical comparison

This example is hypothetical. Figures are illustrative, not market prices. A Dubai distributor asks for 1,000 units, delivered to its warehouse.

On unit price, A looks cheapest. But A requires 2,000 units when you need 1,000, the 50% deposit is paid upfront, and you still pay all freight. Once you work out landed cost per unit you need, A may well end up the most expensive. C has the highest unit price but the lowest MOQ, the best payment terms and the fewest extra costs. Which one wins depends on your numbers. The point is to compare at the same basis.

Step 4: Check the supplier

Before you award, check the supplier exists and is what it says it is.

UAE suppliers

• Trade licence. The u.ae portal lists the National Economic Register and each emirate's economic department as channels for checking a business licence. Check that the licence is active and that its activities cover what you are buying.
• TRN. If the supplier will charge UAE VAT, check its Tax Registration Number. The FTA's TRN linking guide refers to the TRN verification feature on the FTA website.

Saudi suppliers

• VAT registration. ZATCA's VAT Registration Verification e-service checks a business by VAT account number, VAT certificate number or CR national number.
• Product conformity. For consumer products going into the Kingdom, ask whether the products are registered on SABER and whether a product certificate or self-declaration is in place.

Overseas suppliers

Ask for the company registration, export licence where relevant, bank details on letterhead, and references. Then check them. Confirm any change of bank details by phone using a number you already have, never one from the email asking for the change.

Step 5: Turn the winning quote into a purchase order

The PO is the contract you will hold the supplier to. Copy the quote's terms across exactly:

1. Supplier name, address and registration details, as checked.
2. Your PO number and their quote number.
3. Item, specification, quantity and unit price, in the quoted currency.
4. Incoterm, named place and "Incoterms® 2020".
5. Delivery date and delivery address.
6. Payment terms and milestones.
7. Required documents, including certificates of origin and SABER certificates where needed.
8. Reference to your purchase terms and conditions.

Then track the PO until the goods arrive: shipment, clearance and goods received against what you ordered.

Common RFQ process mistakes

• Comparing an EXW price with a DDP price.
• Leaving the Incoterm out of the RFQ, so every supplier picks their own.
• Ignoring MOQ and payment terms until after the award.
• Sending different specifications to different suppliers.
• Keeping replies across email threads, so nobody can rebuild the decision later.
• Raising a PO that differs from the quote, then arguing at invoice time.

Running RFQs in one place

When RFQs run through email and spreadsheets, quotes go missing and the PO drifts from the quote. Quickship's Sourcing Module keeps suppliers, RFQs and POs together. One request goes to several suppliers, replies are collected against it, price, MOQ, lead time and terms are compared side by side, and the chosen quote becomes a purchase order tracked until the goods arrive.