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Value of Saudi government competition that meets local content requirements is $80 billion

RIYADH – The estimated value of government competition that meets local content and localization requirements stands at SR300 billion from the start of the legislations until the first half of 2022, the Minister of Industry and Resources has confirmed minerals Bandar Ibrahim Alkhorayef.

Alkhorayef made the remarks during his speech at the Local Content Forum, during its first edition, where he said that the evolution of local content requires integrated work.

The Local Content and Procurement Authority cannot develop local content alone, but rather needs the efforts and cooperation of different government agencies, private sector partners and society.

The total percentage of local content reached 46% of total business expenditure on goods and services for 2022, with a value of SR 113 million.

Alkhorayef said this is accompanied by the empowerment of national factories through the compulsory list of national products, through which about 4,000 factories have benefited, with an impact on the national economy of about SR 20 billion.

“The adoption of the concept of local content and localization came in order to enhance the strength of internal supply chains in light of international challenges which include the COVID-19 pandemic and the geopolitical crisis,” Alkhorayef noted.

Alkhorayef confirmed that the Ministry of Industry and Mineral Resources is working to strengthen its strategic partners with top spenders in the private sector to contribute to its local content partnerships.

He also added that the ministry aims for society’s participation to strengthen the concept of local content, as it aims to raise awareness and clarify its vital impact on the national economy.

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