Localization of Security Lock Manufacturing in Saudi Arabia

The Localization of Security Lock Manufacturing in the Kingdom of Saudi Arabia involves transferring the knowledge and production of security locks to the Kingdom and establishing their local manufacturing. In December 2021, the Local Content and Government Procurement Authority (LCGPA) signed an agreement to localize the manufacturing of security locks and transfer the knowledge required for their production. This initiative is part of the new approaches to government procurement under the "New Government Tenders and Procurement Law."

By adopting a contracting method for knowledge transfer and industry localization, the LCGPA seeks to augment benefits from government procurement, develop new industries locally, transfer manufacturing knowledge, respond to government demand with high quality, lowest cost, swift turnaround, and provide sustainable national products that help rationalize spending.

The agreement to localize the manufacturing of security locks is the fifth agreement concluded following the introduction of the new approach. It was preceded by four agreements to localize the manufacturing of medical personal protective equipment.

The agreement aims to enhance the security of shipments and supply chains, transfer manufacturing expertise to the Kingdom, maximize the utilization of local resources, and develop local content within the sector.

The Local Content and Government Procurement Authority estimated that the agreement would contribute approximately SAR373 million to the gross domestic product (GDP), reduce manufacturing costs by 35 percent, and support national security. It promotes reliance on 100 percent Saudi-sourced raw materials, strengthening the local industrial sector. Additionally, the initiative is expected to create job opportunities with a Saudization rate of up to 90 percent, while enhancing the security and confidentiality of products transported to government institutions.