The Saudi Cabinet, chaired by King Salman bin Abdulaziz Al Saud, approved the framework for granting incentives for the localization of priority goods and services under the Vision 2030’s national localization strategy.
Saudi Arabia’s Local Content and Government Procurement Authority had recently reduced the value of high-value contracts from SAR 50 million ($13.3 million) to SAR 25 million ($6.6 million).
The cut aims to maximize development benefit from government spending and enhance the opportunities of private sector establishments contributing to local content.
In the past period, the Authority revealed requirements for issuing a local content certificate for large and medium establishments and factories.
The Authority is currently targeting various sectors that include medical supplies, building and construction, chemicals and fertilizers, equipment, personal and household supplies, furniture, hygiene consumables, food, and agricultural products.
The Authority made an exception for small and micro enterprises, provided that the establishment size certificate issued by the General Authority for Small and Medium Enterprises is presented.
Issuing a local content certificate is a prerequisite for benefiting from the mandatory list mechanism in government tenders.
In other news, the Ministry of Industry and Mineral Resources and the General Authority for Competition signed a 3-year data sharing agreement.
The deal is based on the principle of promoting a culture of data sharing and building an integrated relationship between government agencies.
