Local Content
Analysis and improvement of local content percentage for establishments in compliance with government regulations
What is Local Content?
Local content is a national agenda that all economic segments contribute to developing and enabling, starting from community members to the private sector and the public sector. The Local Content and Government Procurement Authority has defined a national and comprehensive definition of local content, and this definition was issued in the organizational arrangements of the Authority issued by the Council of Ministers.
It is the total spending in the Kingdom of Saudi Arabia through the participation of Saudi elements in the workforce, goods, services, productive assets and technology.
Local content, in simple terms, is maintaining the largest possible amount of money spent on purchases within the Kingdom by target groups, whether government or private entities or even community members. At Management & Quality for Business Services, we provide the self-advisor service to calculate and analyze local content for establishments and provide self-consulting that enables establishments to raise the local content percentage to the target degree, enabling our clients to achieve the best results in local content, which will help them win more competitions by God's will, leading to supporting the national economy in line with Vision 2030.
Local Content Elements
Assets
Sources and components of goods to develop production chains
Workforce
Workers manufacturing products or providing services
Goods and Services
Local components used in producing goods or services
Technology and Similar
Research, development and training of Saudi workforce
Local Content Mechanisms
Summary of Preference Regulation
| Category | Description | Preference |
|---|---|---|
| Small and Medium Civil Establishments | Micro, small and medium civil establishments in which citizens' ownership is not less than 50% of the establishment's capital | 10% |
| High Value Contract | A contract whose estimated value equals or exceeds 50 million riyals | 15% |
| Government Entities | For ministries, government agencies, authorities, interests, public institutions and independent legal personality agencies | 20% |
| Major Projects | Strategic projects of national importance | 25% |
| Startups | Startups and small and medium companies in promising sectors | 30% |
| Excellence and Innovation | Establishments with high local content percentages and local innovations | 35% |