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Local Content

In Saudi Arabia, the local content requirements are an essential part of economic policies and pivotal to the country’s economic growth and diversification strategy. Local content refers to the total expenditure through the participation of Saudi elements in labour, goods, services, and productive and technological assets

Local Content Requirements
Local content requirements are defined as a set of rules and regulations imposed by the Saudi government to ensure a certain percentage of local content in business activities and projects. This measure aims to support the local economy and encourage companies to invest in the Kingdom

How to Comply with Local Content Requirements
Companies must provide a certain percentage of local content in their activities and projects. This percentage is determined according to the rules and regulations set by relevant government authorities within Saudi Arabia. By complying with these requirements, companies can benefit from the support and facilities provided by the government to enhance their growth and expand their business scope

Elements of Local Content Evaluation include:

01

Assets

Sources and components of goods for developing production chains

02

Workforce

Local workforce involved in manufacturing products or providing services

03

Goods and Services

Local components used in the production of goods and services

04

Technology and Others

Research and development, and training of Saudi workforce

Mechanisms for Preferencing Local Content

Preference is given to national products, local content, small and medium-sized enterprises, and companies listed in tenders and government procurements as detailed below:

Mandatory List
Minimum Local Content Requirement
Price Preference
Weight of Local Content in Financial Evaluation

A list of national products issued by the relevant authority and updated periodically

It is the minimum requirement for local content that the contractor must achieve by the end of the contract

National products are given a price preference of 10%. This price preference is applied assuming that the foreign product exceeds its stated value in the bidding documents by 10%

A weight equivalent to 40% is allocated to local content and to companies listed in the financial market during the financial evaluation stage of tenders. This is in addition to a weight for price equivalent to 60%

 

ADCPA offer specialized consulting services to companies wishing to comply with local content requirements in Saudi Arabia. we assist you in understanding the rules and regulations and provide support in their effective implementation to achieve full compliance and benefit from the support and facilities provided by the government

Contact Us

We are delighted to assist you in achieving compliance and success for your business. Contact our team accredited by the responsible authorities in Saudi Arabia.
Do not hesitate to contact us Today