Saudi Arabia’s government has instructed companies in certain sectors to obtain a “local content certificate” in order to be able to compete for government contracts, sources told Asharq Al-Awsat.
This comes after the government emphasized the importance of obtaining the certificate, with a deadline set for early May.
Private sector facilities in the medical supplies, chemical and fertilizer, and furniture sectors have reportedly been notified by the government that they must obtain a local content certificate for their products listed on the mandatory list, according to sources.
The Federation of Saudi Chambers has urged all relevant facilities in the specified sectors to contact the Local Content and Government Procurement Authority before May to obtain the required certificate and be eligible to compete for government contracts.
The Authority recently announced that a local content certificate is required for large and medium-sized facilities, as well as factories benefiting from the mandatory list.
The government’s current focus is on seven sectors: medical supplies, construction, chemicals and fertilizers, personal and household supplies and equipment, furniture, cleaning consumables, and food and agricultural products.
The government has emphasized that small and micro-enterprises will be exempted from the local content certificate requirement, if they submit a certificate of their establishment's size issued by the General Authority for SMEs.
Obtaining the local content certificate is a basic requirement to benefit from the mandatory list mechanism in government competitions.
Earlier, authorities began requiring the local content certificate for the pharmaceutical and medical supplies sector, and the new decision will be applied in stages starting May 2023.
The first stage of implementation includes medical supplies, chemicals, and furniture.
In the second phase, which begins in September of this year, the requirements will include the construction and building sector, as well as personal and household cleaning supplies and equipment.
