The Local Content and Government Procurement Authority (LCGPA) in the Kingdom of Saudi Arabia is a vital entity that aims to strengthen the national economy through the development of local content. The authority was established with the goal of achieving a balance between the use of local components in the Saudi market and improving the government procurement system in line with financial and development goals.

Through multiple policies and strategies, the authority seeks to promote local employment and increase reliance on local products and services, contributing to the achievement of Saudi Vision 2030. Below, we will shed light on its nature, the requirements of local content, and the role of the Etqan Law Firm in this regard.

What is the Local Content and Government Procurement Authority?

1- About the Authority

• A Saudi government authority with legal personality and financial and administrative independence.
• It reports directly to the Chairman of the Council of Economic and Development Affairs.
• Its headquarters is located in Riyadh.

2- Purpose of the Authority

• To develop local content Saudi Arabia in all its components across the national economy.
• To enhance the government procurement system in line with national financial and developmental goals.

3- Definition of Local Content

• The total spending within the Kingdom through the use of Saudi components in:
   workforce, goods, services, assets, technology, and more.

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Key Responsibilities of the Authority

• Develop policies and strategies for local content in coordination with government entities.
• Establish standards and mechanisms to measure and track local content.
• Issue certified local content percentage certificates for private sector entities.
• Accredit licensed audit firms to verify local content ratios in private businesses.
• Propose or amend relevant laws and regulations to support local content and procurement improvements.
• Monitor compliance with local content requirements by government entities and companies with 51% or more state ownership.
• Identify high-potential economic activities for local content growth and coordinate regulatory efforts.
• Enhance and streamline government procurement procedures, and unify purchases when needed.
• Prepare studies, research, and reports related to local content and government procurement.
• Local Content and Government Procurement Authority coordinate with the Ministry of Finance to build and update a national database of suppliers and manufacturers.
• Collaborate and exchange expertise with international and regional organizations in relevant fields.
• Represent or participate in representing the Kingdom in regional and international forums.
• Propose local content initiatives and identify responsible implementing bodies.
• Promote awareness of local content concepts through media, publications, and public engagement.
• Organize and participate in exhibitions, conferences, and workshops related to local content.

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What are Local Content Requirements​?

According to the new update, contractors can prove that a product is of national origin whether it is listed in the mandatory list or subject to the price preference mechanism by submitting a Local Content Certificate for the manufacturing facility producing the product, along with any of the following supporting documents:

1. A SABER certificate issued by the Saudi Standards, Metrology and Quality Organization (SASO), clearly indicating that the product’s origin is Saudi.
2. A written declaration from the manufacturer or service provider, using the approved template available on the official website of the Authority.
3. A clear and permanent country-of-origin mark that cannot be easily removed, such as engraving, embroidery, printing, or stamping depending on the nature of the product provided it leaves a trace if removed.
4. A “Made in Saudi” certificate issued by the “Made in Saudi” program.
5. A “Saudi Tech” mark also issued by the “Made in Saudi” program.
6. Compliance with the national rules of origin issued under Ministerial Decision No. (3852), dated 22 Dhul-Qi’dah 1442 AH, for GCC products manufactured outside free zones, in accordance with the unified rules for prioritizing national products in government procurement, as ratified by the Council of Ministers Decision No. (167), dated 24 Rabi’ al-Thani 1435 AH.
7. A product registration certificate or license issued by a competent authority in the Kingdom of Saudi Arabia (such as the Saudi Food and Drug Authority, the Digital Government Authority, the Communications, Space & Technology Commission, or any other relevant authority).
8. A valid commercial registration or freelancer certificate, for services listed in the mandatory list.

Local Content Services Provided by Etqan Law Firm

• Legal Consultations on Local Content:
  • Offer legal consultations to companies seeking to comply with local content laws.
  • Enhance opportunities for legal, financial, and competitive advantages.
  • Advise on strategies for employing Saudi nationals and prioritizing local suppliers.
• Review of Local Content Contracts:
  • Review contracts to ensure compliance with local content obligations.
  • Ensure all contractual terms are clear, binding, and aligned with local content regulations.
• Preparation of Legal Policies for Local Content:
  • Draft legal policies to ensure companies meet local content requirements.
  • Tailor policies to balance legal compliance with the unique needs of each company.
• Representation of Companies before Government Authorities:
  • Represent companies in dealings with government authorities on local content and procurement.
  • Assist in navigating government procedures, certification issuance, and compliance.
• Issuance of Legal Reports on Local Content:
  • Prepare periodic and final legal reports on local content.
  • Ensure compliance with authority standards and provide insights into legal and financial standings.

In conclusion, the Local Content and Government Procurement Authority plays a central role in supporting the Saudi economy and enhancing its competitiveness. By implementing local content requirements and developing effective strategies, the authority enhances investment opportunities and job creation, contributing to sustainable development.Therefore, it is recommended to contact Etqan Law Firm, as the office provides specialized advisory services that help companies comply with local content requirements and achieve legal and financial benefits.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +96656113776, +966541110440, +966504315333.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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