Saudi Arabia’s Mandatory List has emerged as a strategic lever to strengthen the role of local businesses in public sector procurement.
Designed to drive demand for Saudi-made products, the list not only expands market opportunities for domestic manufacturers but also ensures that government entities procure reliable goods that meet stringent quality standards.
Last year, government tenders that included items from the list surpassed 46,600, with a combined value of SAR67.6 billion ($18 billion).
The Local Content and Government Procurement Authority has been steadily updating the list, adding about 407 new products in 2024.
This week, officials announced a further expansion, introducing 105 additional products across seven key sectors: pharmaceuticals and medical supplies, construction, transportation and logistics, furniture, cybersecurity, and information technology.
Authorities say this effort underscores a broader commitment to make local content a cornerstone of Saudi Arabia’s future economy. By prioritizing Saudi products, the government aims to empower national industries, spur innovation, and increase job opportunities while reducing reliance on imports.
The latest update is also part of policies favoring small and medium enterprises (SMEs) and companies listed on the Saudi financial market.
The initiative seeks to strengthen local supply chains and raise the readiness of domestic factories to fulfill public sector demand.
According to the Authority, expected government spending on the newly added products exceeds SAR2.3 billion ($613 million). More than 100 Saudi factories are already equipped to meet this anticipated demand.
These measures form part of broader efforts to maximize the economic impact of public spending. In the second half of last year alone, a series of new policies, strategic agreements, and national programs contributed to economic gains exceeding SAR80 billion ($21.3 billion).
The Authority also integrated local content requirements into 54 privatization projects valued at SAR269 billion ($71.7 billion). Of these, 24 projects have already achieved their targets, representing overSAR 131 billion ($34.9 billion) in contracts aimed at boosting private sector participation and employment.
