Local Content Certificate: why it matters even if you're not chasing government contracts

Many business owners think of the local content certificate purely in terms of government contracts, and put it off until they actually need it. But getting ahead of it early actually pays off in more places than that.

What is the certificate?

An official certificate issued by the Local Content and Government Procurement Authority — an independent government body established by royal order in 2018 as part of Vision 2030 — that shows how much your business relies on Saudi resources, including: local labor, national products and services, locally-owned production assets, and technologies developed or used locally.

The clearest benefit: government contracts

In the evaluation of bids for high-value government contracts, the local content percentage can carry a weight of up to 40% in the financial formula, while price accounts for 60%. That means a business with higher local content can win a contract even if its price isn't the lowest among competitors.

Why it matters even if you're not targeting government contracts right now

• Getting ahead is cheaper: calculating the percentage and preparing the documents takes time and a careful review of your financial and operational data — it's easier to prepare before you need it under time pressure.
• Financing and partnership opportunities: some lenders and potential partners view your local content percentage as an indicator of your business's seriousness and commitment.
• Support for some small businesses: programs exist that cover part of the cost of the local content audit for small and mid-sized industrial businesses, to encourage them to obtain the certificate early.

Who performs the audit?

The audit must be carried out by an accounting office accredited by the Authority, which analyzes your data, calculates the percentage according to approved standards, and prepares a detailed report submitted electronically for the Authority's review before the official certificate is issued.

Details of our Local Content Certificate service ←