Local content and the Local Content Authority are key objectives of Saudi Arabia’s Vision 2030, as the Saudi government seeks to achieve self-sufficiency for local industries, encourage local investments, improve local products, and achieve economic diversification.

What is local content?

Local content means all goods and services produced within the Kingdom of Saudi Arabia, and contain a specific percentage of local content. This percentage is calculated based on local value added, raw materials, local components, local labor, and local technology.

What is the Local Content Authority?

The Local Content Authority is responsible for developing and implementing the local content strategy in the Kingdom of Saudi Arabia, and works to define the policies, procedures, and systems necessary to achieve the objectives of local content.

What is the target to be achieved in local content within the framework of Saudi Vision 2030?

Saudi Arabia’s Vision 2030 seeks to achieve self-sufficiency for local industries, encourage local investments, improve local products, and achieve economic diversification. In order to achieve these objectives, several local content objectives have been defined, namely:

Increasing the percentage of local content in different industries and achieving self-sufficiency.

Improve the quality of domestic products and services and comply with international standards.

Improve efficiency and productivity and provide local jobs.

Encourage and support innovation and R&D to improve local products.

Improving the competitiveness of local industries and expanding local and global markets.

How does the Local Content Initiative encourage the development of local industry?

The Local Content Initiative encourages the development of local industry in many ways, the most important of which are:

Motivating local companies to improve the percentage of local content in their products by providing the necessary financial, technical, knowledge and training support to develop local products and services.

Providing the appropriate regulatory environment for local industries and determining the rules, regulations and laws that encourage the development of local industries and improve the percentage of local content.

Providing government support to local industries by providing financial, tax, customs and logistical support to improve the ability of local industries to compete in local and global markets.

Encouraging international companies to invest in the Kingdom of Saudi Arabia and localizing technologies, knowledge and expertise related to local industries.

Develop the necessary infrastructure to improve the competitiveness of local industries, such as the development of roads, ports, airports, logistics and technological networks.

Providing support for research, development and innovation in local industries to improve local products and increase the percentage of local content in them.

Sincere

In general, the Local Content Initiative is one of the most important initiatives targeted under Saudi Arabia’s Vision 2030, as the Saudi government seeks to achieve self-sufficiency for local industries, encourage local investments, improve local products, and achieve economic diversification.

By developing local industries and increasing the proportion of local content in them, these goals can be achieved, improving the local economy, increasing exports, and providing local employment opportunities.