Ahmed Al-Jumaia

Local Content and the Making of the Future

July 8, 2026 - 00:03 | Last updated July 8, 2026 - 12:23

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We always affirm that challenges create opportunities, and these opportunities test the capabilities of nations when the exit indicator from every crisis is stronger and more mature, treating its repercussions as a new vision in planning for future projects.

This is what makes Saudi Arabia one of those countries that crises and challenges have proven capable of overcoming and benefiting from their lessons, not only because its economy is the fastest-growing among the G20, or the most open to the world, or the highest in spending on developmental projects, but also because this economy is witnessing a strong industrial base for local production and the building of more flexible and sustainable national supply chains.

The world - and Saudi Arabia is part of this world - has gone through the crises of COVID-19, supply chain challenges, market fluctuations, and the escalation of geopolitical events in the Middle East over the past five years, with their ongoing repercussions to this day. Despite all this, Saudi Arabia remained the strongest because it is the most prepared for local production and self-sufficiency, through an integrated economic system capable of continuing and growing under various conditions, adapting to them through national value chains, empowering the talents of the sons and daughters of the nation, creating new industries, and increasing the contribution of non-oil sectors to the national economy.

Saudi Arabia believes that complete reliance on foreign sources during times of crisis represents the greatest challenge to its economy and its ambitious vision. It also believes that investing in its local content is a real investment in the stability and sustainability of its economy, a long-term investment in the future. Every local industry built today means greater capacity for continuity tomorrow, a faster response to crises, and greater flexibility in supply chains and their uninterrupted flow.

Therefore, it has continued to work over the past years on developing policies to empower local content and increase its contribution to the national economy, through localizing industries, directing national purchasing power, stimulating investment, transferring knowledge, and building effective partnerships with both the government and private sectors. This has enabled it today to stand proudly with its products, the strength of its economy, and enhance its position in global competitiveness.

The figures for local content in 2025 prove that the vision, combined with national capability, makes a difference despite challenges and crises. The local content in final spending for the non-oil sector reached approximately 1.299 billion riyals, and the value of absolute local content opportunities exceeded 59.9 billion riyals. Additionally, the value of local content contribution to government procurement reached 91.41 billion riyals, and the volume of investments resulting from localization agreements and knowledge transfer exceeded 19 billion riyals, with the number of jobs created from the total localization agreements exceeding 12,000 jobs.

These figures confirm the role of the Local Content and Government Procurement Authority in enhancing local capabilities and maximizing the benefit of national purchasing power to build a strong and sustainable economy. They also reflect the vision of His Highness the Crown Prince, who explicitly stated that local content represents 'a national agenda, a main part of national strategies and government work mechanisms, and an international model to be emulated.'

We always affirm that challenges create opportunities, and these opportunities test the capabilities of nations when the exit indicator from every crisis is stronger and more mature, treating its repercussions as a new vision in planning for future projects.

This is what makes Saudi Arabia one of those countries that crises and challenges have proven capable of overcoming, benefiting from their lessons, not only because its economy is the fastest-growing among the G20, or the most open to the world, or the highest in spending on developmental projects, but also because this economy boasts a strong industrial base for local production and the building of more flexible and sustainable national supply chains.

The world - and Saudi Arabia is part of this world - has gone through the crises of COVID-19, supply chain challenges, market fluctuations, and the escalation of geopolitical events in the Middle East over the past five years, with their ongoing repercussions to this day. Despite all this, Saudi Arabia remained the strongest because it is the most prepared for local production and self-sufficiency, through an integrated economic system capable of continuing and growing under various conditions, adapting to them through national value chains, empowering the talents of the sons and daughters of the nation, creating new industries, and increasing the contribution of non-oil sectors to the national economy.

Saudi Arabia believes that complete reliance on foreign sources during times of crisis represents the greatest challenge to its economy and its ambitious vision. It also believes that investing in its local content is a real investment in the stability and sustainability of its economy, a long-term investment in the future. Every local industry built today means greater capacity for continuity tomorrow, a faster response to crises, and greater flexibility in supply chains and their uninterrupted flow.

Therefore, it has continued to work over the past years on developing policies to empower local content and increase its contribution to the national economy, through localizing industries, directing national purchasing power, stimulating investment, transferring knowledge, and building effective partnerships with both the government and private sectors. This has enabled it today to stand proudly with its products, the strength of its economy, and enhance its position in global competitiveness.

The figures for local content in 2025 prove that the vision, combined with national capability, makes a difference despite challenges and crises. The local content in final spending for the non-oil sector reached approximately 1.299 trillion riyals, and the value of absolute local content opportunities exceeded 59.9 billion riyals. Additionally, the value of local content contribution to government procurement reached 91.41 billion riyals, and the volume of investments resulting from localization agreements and knowledge transfer exceeded 19 billion riyals, with the number of jobs created from the total localization agreements exceeding 12,000 jobs.