Saudi companies that are members of the Local Content Coordination Council sourced 47.22 percent of their purchases domestically in 2022, latest data showed.
A statement released by the Local Content and Government Procurement Authority attributes this figure to the building of effective partnerships between government agencies and the private sector, as well as several initiatives, programs, and enablers put into practice by the council.
Launched in 2019 by the LGPA, the Local Content Coordination Council seeks to build links with public and private sector firms to drive up the amount of locally produced resources and goods used in Saudi Arabia.
Members of the body include the Ministry of Energy, the Ministry of Industry and Mineral Resources, and the Federation of Saudi Chambers, as well as Saudi Aramco, SABIC, and the Saudi Arabian Mining Co.
The latest statement showed the council also worked on the local goods purchases index initiative for companies, where the percentage of total purchases in this regard reached 72.6 percent.
Additionally, the authority highlighted that the council worked to include domestic requirements in high-value projects, of which there were 222 initiatives, with the estimated percentage for local content reaching 56 percent.
In January, the LCGPA signed four deals to foster partnerships between the Kingdom’s public and private sectors in drug production.
The entity sealed the agreements for the localization of industry and knowledge transfer, the Saudi Press Agency reported at the time.
The deals were “based on the principle of cooperation and integration to enhance health and pharmaceutical security and development” in the Kingdom, the authority said at the time.
The authority is dedicated to developing local content in all its components within the Saudi economy. It focuses on improving government procurement processes and ensures alignment with national visions and strategies to achieve development and financial goals.