RIYADH — Minister of Industry and Mineral Resources and Chairman of the Board of Directors of the Local Content and Government Procurement Authority Bandar Alkhorayef said that the percentage of local content in Saudi Arabia jumped from 28 percent in 2018 to 51 percent last year, with investments exceeding SR18 billion, contributing to knowledge transfer and building community capabilities. The minister attributed this to the activation of the roles of the authority ever since its inception.
Addressing the Local Content Award ceremony in Riyadh on Monday, he said that Local Content and Government Procurement Authority has become a powerful tool for attracting investments, promoting localization, and transferring technology. “This progress did not come solely from amending regulations, but rather from a genuine shift in the mindset of both government entities and the private sector, and how spending is being utilized to serve development and the economy,” he said.
Regarding partnerships, Alkhorayef revealed that nearly 80 agreements have been signed since the activation of utilizing industry and knowledge transfer approach, launched in 2021 and continuing until the end of 2025. “These agreements, representing an investment exceeding SR18 billion, have contributed to knowledge transfer and community capacity building. Through the Economic Participation Program, the value of signed agreements reached SR4.3 billion across five key sectors, resulting in local models for domestic manufacturing and the development of non-civilian capabilities,” he said.
Alkhorayef stated that the Local Content Award has become an annual event that celebrates and honors innovators and distinguished individuals from government entities, the private sector, and individuals for their transformative and active role in advancing the goals of local content development.
The minister said that the Local Content Coordination Council embodies and translates this synergy. “Since its establishment in 2019, it has overseen cumulative spending of SR683 billion in procurement by member companies and developed approximately 461 investment opportunities valued at over SR 640 billion. This year, it is updating its strategy for the next five years to strengthen its role as an umbrella organization for joint efforts and expand the scope of work for companies affiliated with the council,” he pointed out.
According to Alkhorayef, this trajectory also underscores the growing awareness among private sector companies of the importance of local content and localization, and its transformation from a regulatory obligation to an institutional practice embodied in the range of programs launched by these companies. The number of local content programs launched by national companies in recent years has reached 19, representing major Saudi firms, compared to only four programs at the beginning of the local content system.
Regarding the Local Content Award, Alkhorayef highlighted that this edition witnessed a qualitative development through the introduction of two new tracks in the main sector, encompassing institutions and non-profit organizations. “This reflects a firm belief that local content is a shared responsibility that extends to all who contribute to creating economic and social impact. The award also recorded a growth in the number of applicants exceeding 130 percent compared to last year, a figure that reflects the expanding scope of qualitative impact and the genuine desire to participate and excel,” the minister added.
Source: Saudi Gazette