The estimated value of government competitions that meet the requirements of local content and localization amounted to $80 billion since the launch of legislation until the first half of 2022, announced Minister of Industry and Mineral Resources Bandar Ibrahim AlKhorayef.

He said that developing local content requires integrated work and concentrated efforts and cooperation of various government bodies, partners from the private sector, and society.

AlKhorayef, who is also chairman of the Board of Directors of the Local Content and Government Procurement Authority, was speaking at the Local Content Forum in Riyadh on Monday.

He indicated that the cabinet approved the formation of local content development teams in government agencies to ensure the unification of efforts and joint work with the authorities to achieve the goals.

About 270 teams have been formed to work on achieving the agenda in all government sectors amid efforts to create a stable and robust economy.

The minister disclosed that local content accounts for 46 percent of companies' total spending on goods and services for 2020, with an estimated value of $30.1 billion.

It came along with empowering national factories through the mandatory list of national products, with about 4,000 factories benefiting from it, with an impact of more than $5.3 billion on the national economy.

The minister explained that Vision 2030 requires a unique business model, adding that the goals outlined cannot be achieved using traditional methods, and the vitality of local content comes into the picture at this juncture.

"This concept represents a comprehensive umbrella under which several elements fall, starting from the product to services, personnel, training, and technology," added AlKhorayef.

Several ministers participated in the first edition of the Local Content Forum and discussed the latest initiatives and programs to develop local content in targeted sectors.

Minister of Environment, Water, and Agriculture Engineer Abdul Rahman al-Fadhli addressed the recent government approval to allocate $24.2 billion to promote local content of all food products, which will lead to a rise in local content, an increase in gross domestic product, and expand the ability to export.

Fadhli said the agricultural sector achieved an increase of $19.2 billion last year, representing 2.3 percent of the GDP.

He expected the total value of loans issued by the Agricultural Development Fund to reach $1.8 billion, with over $32 billion invested in the water sector over the past six years.

Saudi Arabia is a pioneer in producing desalinated water and its industry's localization, enabling the use of locally developed materials and technologies.

The Minister noted that the government approved $28 billion for the water sector to be invested over the next two years to boost services and ensure the product is sustainable.

Fadhli added that the government enacted possible policies, legislation, and incentives to expand local content and ensure its sustainability, development, and improvement, which translates into job opportunities that benefit Saudi youth.

Minister of Investment Eng. Khalid al-Falih underscored the significance of quality investors, including Saudis and foreigners, in further boosting localization and enhancing local content.

"Saudi Arabia attaches great importance to local content, localization, and foreign investors, and its policy look at the presence of foreign investor as a tool to achieve higher goals," Falih said.

Falih stated that international investors coming to the Kingdom are looking for the local market and competencies and taking advantage of the Kingdom's capabilities to obtain global competence.

He stressed the importance of attracting foreign investment and promoting local investment, saying this would benefit the local market as a temporary stimulus and lead to the withdrawal of regulatory restrictions or financial incentives in exchange for local content.

Meanwhile, Minister of Finance Mohammed al-Jadaan stressed the importance of local content in enabling and providing a stimulating environment for the private sector and taking into account the requirements of the new competition system.

Jadaan stated that the Local Content Authority, the Spending Efficiency Authority, and government projects are working to achieve and enable local content.

He indicated that new contractual frameworks were developed in the contracting and bidding system for procurement by signing long-term contracts, stipulating localization, knowledge transfer, stimulating small and medium enterprises, and providing additional incentives.

According to Jadaan, the Ministry of Finance wants to provide services to citizens and an environment that stimulates business.

The ministry's primary role is economic growth, creating opportunities for the private sector to develop local content and localize goods and services, and providing an attractive environment for foreign investors based on the national investment strategy.

Minister of Transport and Logistics Services Saleh al-Jasser stated that the Kingdom has a clear vision and interest in local content and devised several mechanisms to promote its plans.

The Minister stressed that the transport and logistics system has a national strategy to promote local content, whether in assets, human resources, goods, services, or technologies, in cooperation with the relevant authorities.

Jasser discussed the ministry's strategies, adding that it has devised over 1,000 initiatives, including 30 major ones, including the Landbridge Project, which significantly boosts the Kingdom's position as a global logistics hub.

The "Future of Localization in the Kingdom" session discussed directing military spending towards localization and opportunities for developing local content in the industrial sector.

The governor of the General Authority for Military Industries (GAMI), Ahmed al-Ohali, announced 175 facilities pump their money into Saudi Arabia, highlighting the Kingdom's advantages, including its qualitative capabilities and strategic location at the heart of global supply chains.

Saudi Arabia also provides several facilities to foreign investors and has allowed full-business ownership without needing a local partner.

Ohali indicated that GAMI held more than 17 workshops, which determined the outputs of the supply chain project with 74 investment opportunities with an estimated total investment of $72 billion.

The Saudi Arabian Mining Company (Maaden) launched its Local Content Program (Tharwah) to maximize the mining industry's contribution to the Saudi economy in line with Vision 2030.

Maaden estimates that its spending on goods and services to support its operations will reach $14.6 billion by 2040, enabling the authority to contribute $8.8 billion to the GDP and create 47,000 promising jobs for Saudis during the same period.

The "Tharwah" program focuses on five main axes, including generating high-quality employment opportunities that meet the expectations of young Saudis, creating opportunities that incentivize local investment and strengthen the local economy, and supporting the development of SMEs as an engine of growth for the broader Saudi economy.

It also seeks to reinforce efforts to support remote communities and businesses, helping create robust, self-reliant business ecosystems that strengthen the local economy, and partner with organizations across the mining value chain to grow the capabilities and capacity of Local Content.

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