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Local Content Purchases in Saudi Private Sector Estimated at $26 Billion

The Federation of Saudi Chambers organized workshops to present local content opportunities in the private sector. (SPA)
The Federation of Saudi Chambers organized workshops to present local content opportunities in the private sector. (SPA)
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Local Content Purchases in Saudi Private Sector Estimated at $26 Billion

The Federation of Saudi Chambers organized workshops to present local content opportunities in the private sector. (SPA)
The Federation of Saudi Chambers organized workshops to present local content opportunities in the private sector. (SPA)

A gathering of the business sector and companies in Saudi Arabia estimated the volume of contracts targeting local content purchases in the private sector to exceed 100 billion riyals ($26 billion).

The Federation of Saudi Chambers, represented by the National Committee for Local Content, in cooperation with the Local Content and Government Procurement Authority, held two workshops on Friday with the Saudi Electricity Company and the Saudi Basic Industries Corporation (SABIC), in the presence of a number of national companies.

The workshops presented investment and localization opportunities, as part of the efforts and initiatives of the Local Content Coordination Council, which seeks to support the aspirations of the Kingdom’s Vision 2030 to enhance local content in various sectors, by localizing the production of goods and services and raising their competitiveness.

SABIC explained that the investment opportunities that fell within its Nusaned initiative to enhance local content contributed approximately SR 6.1 billion ($1.6 billion) to GDP.

For its part, the Saudi Electricity Company said that its strategy to localize the electricity industries promoted support for local manufacturing, and included three initiatives to raise the percentage of localization in the company’s projects.

Saudi Electricity noted that the volume of future demand for purchases and contracts was expected to reach 100 billion riyals, which it said constituted a promising investment opportunity for national companies and support for the localization of the industry.

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Saudi Government Calls for Private Sector Involvement to Enhance Vision 2030 Reports

King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
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Saudi Government Calls for Private Sector Involvement to Enhance Vision 2030 Reports

King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)
King Abdullah Financial Center in Riyadh (Asharq Al-Awsat)

The Saudi government has directed greater private sector involvement in shaping the content of Vision 2030 communications and reports, according to sources who spoke to Asharq Al-Awsat. The goal is to amplify the impact of the annual Vision 2030 reports by making them more comprehensive and directly relevant to the business community.

The Strategic Management Office in the Saudi Royal Court has invited private sector stakeholders to review the annual Vision 2030 report to raise awareness of governmental achievements. Businesses are encouraged to provide feedback to ensure that future reports are more impactful and valuable for their audience.

The initiative aims to gather feedback on whether the current report format effectively delivers information relevant to the business sector. It also seeks input on the balance between general achievements and sector-specific details, as well as insights on the report’s accessibility and usefulness to business audiences.

According to the sources, the government is also evaluating the level of transparency in the report, particularly in showcasing progress and achievements. Stakeholders are being asked to suggest areas of focus for future editions to make the reports more comprehensive and relevant to their needs.

Additional proposals include enhancing collaboration between the Vision 2030 communications team and Saudi chambers of commerce to better report on progress and achievements to the private sector. Furthermore, the government is exploring the inclusion of practical success stories from businesses that have played a role in achieving Vision 2030 goals.

Since its inception, Vision 2030 has worked to identify and address challenges facing businesses. Significant reforms have been implemented to remove barriers, ensuring the private sector can fulfill its vital role in driving economic growth.

Efforts have included reforms to streamline the business environment, enhance the quality and efficiency of government services, and digitize processes. Additionally, numerous programs, initiatives, funding platforms, and business incubators and accelerators have been launched to support the private sector.

The Vision 2030 annual report for 2023 highlighted strong program performance, with 87% of the year’s 1,064 initiatives either completed or on track. Among the 243 key performance indicators (KPIs) identified, 81% of third-level KPIs met their targets, while 105 exceeded future targets set for 2024–2025.

The report also noted that non-oil gross domestic product (GDP) reached SAR 1.889 trillion, compared to a baseline of SAR 1.519 trillion. The 2023 target was SAR 1.934 trillion, with the ultimate Vision 2030 target set at SAR 4.97 trillion.

Private sector contributions to GDP increased to 45%, meeting the 2023 target and surpassing the baseline of 40.3%. The long-term Vision 2030 target is 65%.