Local Content is a national agenda that all economic segments contribute to developing and empowering, starting from individuals in the community to the private and public sectors. In simple terms, local content aims to retain as much money as possible spent on purchases within the Kingdom of Saudi Arabia by the targeted groups, whether public or private entities, or even community members.
The Kingdom supports local content through:
Price preference: Granting national products a price preference of 10 percent. This means applying the price preference by assuming that the foreign product is 10 percent higher than its value stated in the competition documents.
The Mandatory List: A list of national products issued and regularly updated by the Local Content and Government Procurement Authority.
Local Content Weight in Financial Evaluation: Allocating a weight of 40 percent for local content and for companies listed on the capital market during the financial evaluation stage of bids, in addition to a price weight of 60 percent.
The minimum local content: This is the minimum local content that the contractor must achieve by the end of the contract.
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