Arab News
Arab news, Thu, Oct 30, 2025 | Jumada al-Awwal 8, 1447
Saudi Local Content Authority targets 2k products on mandatory list in 2026
Saudi Arabia:
The Saudi Local Content and Government Procurement
Authority plans to expand its mandatory list of national products to 2,000 items
next year, up from about 1,500 currently, according to its CEO Abdulrahman Al-Samari.
Speaking to Al-Eqtisadiah, Al-Samari said the
expansion will focus on key sectors such as pharmaceuticals, food, and
machinery, and depends on the growth of local industrial capabilities and their
ability to meet government demand.
Established in 2019, the authority aims to raise
local content in government procurement and projects from about 30 percent to
nearly 50 percent, while expanding the number of products on the mandatory list
from just 100 national products at inception to 1,500 today.
The mandatory list requires government entities to
prioritize procurement from suppliers using locally produced goods, thereby
promoting domestic industries and supply chains.
Al-Samari noted that the authority has recently
signed its first agreement in the cybersecurity sector with the National
Information Technology Co. to localize products such as firewalls and data-leak
prevention systems, citing their strategic and security importance.
He added that localizing these technologies will
create added value for the national economy and generate high-quality job
opportunities for Saudi citizens.
The CEO also highlighted partnerships in
the pharmaceutical, food, machinery, equipment, and vehicle sectors, noting that
work is underway to develop national capabilities in automotive manufacturing.
According to the authority’s second-quarter 2025
report, the mandatory list currently includes 1,444 national products across 16
sectors.
Local content is defined as the total spending
within Saudi Arabia through the participation of national labor, goods, and
services, aimed at maximizing domestic economic impact and keeping value
creation within the Kingdom.