Local Content and Government Procurement Authority

The Local Content and Government Procurement Authority (LCGPA) is the entity responsible for developing local content in all its components at the national economic level in the Kingdom of Saudi Arabia. Its responsibilities include developing local opportunities and leveraging government purchasing power in partnership with the public and private sectors. Additionally, it is responsible for developing strategies and policies and proposing laws related to local content development. It was established on December 27, 2018.

LCGPA is responsible for providing consulting and training services to ensure the implementation of local content and government procurement requirements in collaboration with various stakeholders from the public and private sectors. 

Some of the key mandates of the authority include setting targets and measuring the impact achieved by local content, preparing reports on it, participating in government procurement processes, designing and developing government procurement procedures, developing and monitoring local content, and concluding agreements for industry localization, knowledge transfer, and monitoring their implementation.

Local content is defined by the total expenditure in the Kingdom through the participation of Saudi elements in the workforce, goods, services, assets, technology, and more. Local content includes elements such as goods or services, which are the local components used in production, assets, which are sources or components of goods to develop production chains, labor force, which includes the workforce involved in manufacturing products or providing services, and technology and more, which encompass research, development, and training of the Saudi workforce.

The benefits of increasing the local content ratio in the Kingdom include developing local capabilities, creating job opportunities, and strengthening the national economy.

The headquarters of the LCGPA is located in the capital, Riyadh. It has a board of directors appointed by a Royal Order. According to its organizational arrangements, the authority has a legal personality and financial and administrative independence. It is organizationally linked to the chairman of the Council of Economic and Development Affairs.

The primary legal foundations for the work of the authority include the Public Procurement Law, the regulatory arrangements for the LCGPA, the Regulations on Preference for Local Content, and Local Small and Medium Enterprises (SMEs) and Companies Listed on the Capital Market in Business and Procurement, in addition to the Implementing Regulations of the Public Procurement Law.

LCGPA plays several key roles. These include setting targets and requirements for local content in government purchases and monitoring their implementation. The authority also contributes to the development of government procurement processes and procedures. Additionally, it engages in negotiations with foreign entities and companies to facilitate knowledge transfer and enhance local content. Furthermore, the authority participates in identifying government procurement needs that multiple government entities share and monitors the execution of standardized procurement agreements.