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Logo of Local Content and Government Procurement Authority
The Local Content and Government Procurement Authority (LCGPA) announced the implementation of local content mechanisms on more than 100 government tenders in operation and maintenance sector, at an estimated cost exceeding SAR 19 billion, Saudi Press Agency reported.
The move will have a positive impact on incentivizing companies operating in the sector to pay more attention to attracting national cadres and purchase domestic goods.
It is also expected to drive companies to train national cadres and invest in them in an optimum manner, which reflects integration between the mechanisms of local content preference and the existing efforts in nationalization of the operation and maintenance sector, the report said.
Minister of Labor and Social Development, Ahmed Al-Rajhi, issued a decision, in October 2019, to increase the level of Saudization in operation and maintenance contracts by government entities and companies where the government holds a stake of not less than 51% in capital, according to data compiled by Argaam.
The initiative helped in the employment of more than 71,000 citizens in the sector since its launch two years ago until the end of May 2021.
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