Local content requirements will take effect for 965 products starting in June 2028

The Authority requires a minimum threshold for local content to qualify for the mandatory list, as part of efforts to promote localization and improve the efficiency of government procurement.

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The requirement for a minimum local content percentage in the local content certificate at the facility level will take effect for 965 products across 14 sectors on the mandatory list of national products, effective June 1, 2028, as announced by the Local Content and Government Procurement Authority, in a move aimed at promoting local content and improving the efficiency of government procurement.

The Authority clarified that the minimum requirement for local content will become a prerequisite for benefiting from the mandatory list of national products, as part of its efforts to increase the contribution of national industries to the local economy and enhance their competitiveness.
It added that the expansion of these requirements was based on a study of the local market and the capabilities of national factories, with the aim of raising localization rates, developing production capacities, and supporting local content targets.
The Authority noted that the decision covers 965 products across 14 sectors on the mandatory list, confirming that details of the products and the required minimum local content percentages are available on its website.

For his part, the Authority’s official spokesperson, Engineer Abdulrahman Al-Sagheer, emphasized that announcing the requirements prior to the implementation date gives businesses sufficient time to prepare and comply with the new requirements, noting that the Authority will continue to develop the mandatory list and periodically review local content percentages to support the growth of national industries and promote economic sustainability.