In a significant achievement reflecting the substantial progress in enhancing local content, Saudi Arabia's Minister of Industry and Mineral Resources and Chairman of the Local Content and Government Procurement Authority, Bandar Al-Khorayef, announced that the percentage of local content in the Kingdom has reached 51% in the past year, compared to 28% in 2018, during the Local Content Awards ceremony held in Riyadh.
Al-Khorayef explained that this increase resulted from activating the role of the authority since its establishment, with investments in this area exceeding 18 billion riyals, contributing to the enhancement of knowledge transfer and the building of local community capacities.
Details of the Announcement
During his speech, Al-Khorayef emphasized that the Local Content and Government Procurement Authority has become an effective tool for attracting investments, promoting localization, and transferring technology. He clarified that this progress was not merely a result of legal amendments but stemmed from a genuine shift in the mindset of government entities and the private sector regarding how to utilize spending to serve development and the economy.
Al-Khorayef revealed that approximately 80 agreements have been signed since the activation of the industrial and knowledge transfer approach in 2021, which will continue until the end of 2025. These agreements, representing investments exceeding 18 billion riyals, have contributed to enhancing knowledge transfer and building community capacities.
Background & Context
The Local Content and Government Procurement Authority was established in 2019, and since then, it has overseen a cumulative spending of 683 billion riyals in purchases by member companies. The authority has also developed around 461 investment opportunities valued at over 640 billion riyals. This year, the authority is working on updating its strategy for the next five years to strengthen its role as a comprehensive organization for joint efforts and to expand the scope of work for the council's affiliated companies.
Impact & Consequences
These developments underscore the importance of local content in bolstering the national economy, as it has become an integral part of developmental strategies. The growth in the number of applicants for the local content award, which exceeded 130% compared to last year, reflects a genuine desire to participate and excel in this field.
Al-Khorayef also noted that the current edition of the local content award has seen a qualitative evolution through the introduction of two new tracks in the main sector, which include institutions and organizations.
Regional Significance
This increase in local content is a clear indicator of the success of government strategies in enhancing the national economy and developing community capabilities. It highlights the commitment to fostering a sustainable economic environment that prioritizes local resources and expertise.
In conclusion, the rise in local content not only signifies economic growth but also reflects the Kingdom's vision for a diversified economy that leverages local talents and resources effectively.