The Local Content Coordination Council is a Saudi coordination council issued by the Local Content Partnerships Initiative, and chaired by the Local Content and Government Procurement Authority. Its members include representatives of government entities and major private companies. The council supports local content and integrates it under a single umbrella to consolidate efforts in the private sector.
The council aims to increase the local content rates of the member partners, support and develop local content opportunities in the sectors, as well as activate communication with different segments of the community.
The local content is defined as the total expenditure in the Kingdom of Saudi Arabia through the participation of Saudi components in the workforce, as well as goods, services, and production and technical assets.
The Local Content Coordination Council initiatives
The Local Content Coordination Council includes seven initiatives:
- The procurement index of domestic goods: In 2022, total spending on goods amounted to SAR89 billion. Local goods constituted about 64 percent, with an 11 percent rise compared to 2019.
- Mandatory list of local products initiative: It aims to limit direct procurement and project purchases of products included on the mandatory list to local manufacturers.
- Price preference for the local product in direct procurement initiative: The initiative aims to adopt a price preference for local products when purchased.
- Unifying efforts for qualifying local manufacturers initiative: It aims to enhance the level of local manufacturers and suppliers.
- Industries localization: It seeks to localize 176 opportunities worth SAR128 billion from 2019 until 2022.
- Unified methodology for the local content.
- Incorporating local content requirements into high-value projects.
Local Content Coordination Council workshops
The Local Content Coordination Council, in collaboration with the Federation of Saudi Chambers, presented workshops to increase purchases of local goods by the council's member companies, in which one hundred investors participated. The workshops covered 396 opportunities across ten sectors, with a total value of SAR13.7 billion.
Local Content Coordination Council members
The Local Content and Government Procurement Authority chairs the Local Content Coordination Council with the following members: The Ministry of Energy, the Ministry of Industry and Mineral Resources, the Federation of Saudi Chambers, Saudi Aramco, STC Group, SABIC, Maaden Company, and the Saudi Electricity Company, and Saudi Airlines. Through its strategy, the council coordinates efforts among members to maximize local content in the national economy. It establishes an integrated system, launches initiatives, programs, and capabilities, builds partnerships between government agencies and the private sector, increases the local content of members, develops local content opportunities in various sectors, and enhances the effectiveness of communication with various economic segments.
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