Saudi Arabia’s Local Content Initiatives Valued at SR800 Billion
With a booming local content industry, Saudi Arabia’s projects now amount to approximately SR800 billion ($213 billion) by the third quarter of 2024, as revealed by the Kingdom’s Minister of Industry and Mineral Resources, Bandar Alkhorayef.
Increased Local Content in Government Procurement
Alkhorayef announced at the Local Content Forum in Riyadh that Saudi Arabia’s share of local content in government procurement has risen from 33 percent in 2020 to 47 percent by the third quarter of 2024.
Focus on Enhancing Local Content
The Local Content and Government Procurement Authority, chaired by Alkhorayef, is dedicated to encouraging target sectors to prioritize local content, improve governance in government procurement processes, and enhance efficiency in this area.
Empowering National Economy
The LCGPA, established in 2018, aims to strengthen local content in the national economy through policies, fostering local opportunities, promoting transparency, and utilizing national purchasing power in collaboration with both public and private sectors.
Advancing Saudi Vision 2030
Alkhorayef emphasized the critical role of the LCGPA in advancing local content, a cornerstone of Saudi Vision 2030, which has received recognition at local, regional, and international levels.
Success Stories and Job Opportunities
The authority’s success includes activating over 380 local content teams, supporting national factories, generating over 42,000 new job opportunities, and signing agreements to localize industries and transfer knowledge in key sectors.
Future Directions and Economic Growth
Panel discussions at the forum addressed future directions of local content in the context of Saudi Vision 2030, emphasizing the importance of knowledge transfer, economic diversification, and increasing exports to drive private sector growth and create sustainable jobs.
Saudi Arabia’s Integration into Global Economy
Investment Minister Khalid Al-Falih highlighted the importance of globalization and foreign investment in the Saudi economy, aiming for a market worth over SR6 trillion by 2030 through partnerships and knowledge transfer in industries like petrochemicals and energy.
Promoting Localization in Energy Sector
Assistant Minister of Energy for Development and Excellence Ahmed Al-Zahrani discussed the role of the energy sector localization committee in promoting localization and ensuring stable supply chains, with a focus on research and development for sustainable innovation.