عربي English Türkçe اردو فارسى
Logo
Latest News
Business

‘Local Content Certificate’: A Basic Requirement in Saudi Gov't Competitions

Medical supplies are among the targeted sectors for the issuance of a local content certificate to enter government competitions (Asharq Al-Awsat)
Medical supplies are among the targeted sectors for the issuance of a local content certificate to enter government competitions (Asharq Al-Awsat)
TT
TT

‘Local Content Certificate’: A Basic Requirement in Saudi Gov't Competitions

Medical supplies are among the targeted sectors for the issuance of a local content certificate to enter government competitions (Asharq Al-Awsat)
Medical supplies are among the targeted sectors for the issuance of a local content certificate to enter government competitions (Asharq Al-Awsat)

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.

Most Viewed

 
 
Business

Saudi Private Sector Exports Financed by Banks Grow 21.1%

The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)
The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)
TT
TT

Saudi Private Sector Exports Financed by Banks Grow 21.1%

The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)
The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)

The value of Saudi private sector exports financed by commercial banks through documentary credits (both settled and open) grew by 21.1% year-on-year, reaching SAR 40.4 billion ($10.8 billion) in the third quarter of 2024. This represents an increase of over SAR 7 billion ($1.9 billion) compared to SAR 33.3 billion ($8.9 billion) in the same period in 2023.

According to the Saudi Central Bank’s October statistical bulletin, the Gulf Cooperation Council (GCC) emerged as the leading importer by value, accounting for SAR 26 billion ($7 billion), which represents 64% of total exports. Arab countries followed, importing goods worth SAR 7.7 billion ($2 billion), or 19.1% of the total.

On a quarterly basis, exports financed through documentary credits grew by 35%, rising by more than SAR 10 billion ($2.7 billion) compared to SAR 30 billion ($8 billion) in the second quarter of this year.

The composition of exports showed that “other industrial products” accounted for 79% of the total value of documentary credits, amounting to SAR 31.9 billion ($8.5 billion). Exports of “chemical and plastic materials” made up 19% of the total, valued at SAR 7.6 billion ($2 billion), while “agricultural and livestock products” contributed 2.3%, exceeding SAR 911 million ($243 million).

The Saudi Central Bank’s October bulletin also highlighted a decline in total assets, which stood at SAR 1.8 trillion ($477 billion), down by SAR 80.3 billion ($21.4 billion) compared to September. However, on a year-on-year basis, total assets rose by SAR 27.5 billion ($7.3 billion) compared to October 2023.

The Central Bank’s investments in foreign securities increased by 3% in October, surpassing SAR 1 trillion ($266 billion), compared to SAR 986.8 billion ($262 billion) during the same period last year.

The total reserve assets of the Central Bank grew by 2.19% year-on-year, reaching SAR 1.63 trillion ($433.8 billion) by the end of October, compared to SAR 1.59 trillion ($423 billion) in October 2023. However, reserve assets dropped by 4.7% month-on-month, falling from SAR 1.71 trillion ($455 billion) in September.

Saudi Arabia’s reserve assets include investments in foreign securities, foreign currency deposits, reserves with the International Monetary Fund, Special Drawing Rights, and monetary gold.