Riyadh: The Local Content and Government Procurement Authority (LCGPA) introduced minimum local content requirement within the Local Content Certificate at the enterprise level as a prerequisite for benefiting from the Mandatory List of national products.

According to Saudi Press Agency, the requirement will first cover a select number of products in government procurement, with the authority planning to extend it to the remaining items on the list to be announced later. The initiative complements the authority’s efforts to increase the contribution of local content to the national economy and maximize the benefits of government procurement.

The authority has specified that 233 products will be subject to the minimum local content requirement starting August 1 this year, including ceramic and porcelain tiles. Additional products, such as split air conditioners, water pumps, water valves, copper wires, and a range of medical devices and supplies, will be subject to the requirement beginning August 1, 2027.

Companies can review the applicable products and their respective minimum percentages through the LCGPA’s official website. The LCGPA underscored that the targeted ratios are reviewed periodically in line with relevant developments.