94.07 % نسبة تغطية المحتوى المحلي في المنافسات الحكومية

The Local Content and Government Procurement Authority has issued its annual report for the fiscal year 2024, which reviews the various efforts of the authority and the achievements and progress made in developing local content across all its elements at the national economy level, as well as its role in enhancing government procurement in collaboration with relevant entities, in accordance with the tasks and responsibilities assigned to it under its regulations.

The report clarified that the authority continues its efforts to develop local content, as the year 2024 witnessed exceptional progress on all fronts, coinciding with an important milestone in the authority's journey, as it completed six years of continuous work and ongoing development.

The report indicated an increase in the coverage percentage of local content tools to 94.07% in terms of value in government competitions, and the contribution of operational spending by strategic partners in the private sector amounted to 114 billion riyals, representing 44.33% for local content, equivalent to 50 billion riyals.

In the context of building partnerships and enhancing cooperation, the authority successfully concluded strategic agreements with 38 government entities and explored areas of joint cooperation to develop local content with more than 50 companies from the private sector; this contributed to the development of local content across various economic sectors in the Kingdom. These partnerships have expanded the horizons of cooperation and knowledge exchange, enhancing the capabilities to provide innovative solutions that support building a sustainable and diverse economy.

The authority also played a pivotal role in establishing the concept of local content by improving legislation and procedures that enhance the competitiveness of national products and services, in addition to aligning the government procurement system with the objectives of Saudi Vision 2030; resulting in the creation of 124,000 direct and indirect job opportunities, increasing reliance on local resources, and enhancing the Kingdom's competitive ability on the international level.

The authority has created a business model that emphasizes transparency by involving stakeholders in achieving targets, adopting aspirations, and raising awareness as foundational pillars; believing that this model will achieve sustainability and ensure the establishment of a culture of local content in government entities, transitioning from mere compliance to adopting it as part of the work culture.

The annual report outlined the updated strategic directions of the authority, which focused on empowering local industries, enhancing sustainability, driving innovation, and developing new legislation and programs aimed at increasing the percentage of local content in the national economy, while ensuring adherence to the highest standards of quality and transparency. This was reflected in the local content value index in final spending for the non-oil sector, reaching a value of 1.232 billion riyals, and achieving 55.8% in the local content percentage index in final spending for the non-oil sector.

Among the most notable achievements of the authority during the year 2024 was the success in increasing reliance on local goods and services in many major national projects, as the percentage of local content in the spending of state-owned companies reached 50.8%. Regarding the authority's major initiatives and launching opportunities for local content development, the value of local content opportunities achieved through the inclusion of national products in the mandatory list and applying the minimum mechanism on government competitions and Vision realization programs, along with several other projects, was estimated at 61.7 billion riyals. The expected investment size from the agreements concluded for localizing industry and transferring knowledge was estimated at 17.284 billion riyals since the beginning of its implementation.

The Local Content and Government Procurement Authority has worked to enhance digital transformation by launching several initiatives that contributed to improving the efficiency of government procurement processes; leading to a higher level of transparency and competitiveness in the Saudi market.

Regarding the authority's role in developing national competencies, it implemented more than 600 specialized training programs aimed at raising the level of expertise and skills, benefiting more than 17,217 beneficiaries, which positively reflected on the overall performance of the authority.

The efforts were not limited to enhancing national industries and services only, but also included developing the government procurement system and upgrading it to be more aligned with requirements, as well as working on improving the internal processes of the authority and adopting the best global practices; which helped achieve higher levels of efficiency and institutional excellence, culminating in obtaining three certificates in the fields of quality and excellence.

For more details, you can view the digital version of the annual report of the Local Content and Government Procurement Authority for the year 2024 through the following link: https://2u.pw/V84mO