stc’s annual contribution to local content reaches up to SAR 12 bln: exec

Emad Alaoudah, stc Group Chief Shared Services Officer

stc’s contribution to local content reaches up to SAR 12 billion annually, Emad Alaoudah, stc Group Chief Shared Services Officer told Argaam.

This contribution is backed by high Saudization rate, procurements from local firms and the building of local capacities through “stc Academy” and the corporate incubator inspireU, Alaoudah said.

The group exceeded the Local Content & Government Procurement Authority’s (LCGPA) target by nine points, reaching 39.28% and 40.75% in 2020 and 2021, respectively.

The performance was driven by the group’s focus on procurements, its support of small and medium-sized enterprises (SMEs) and local firms, as well as the global strategic main suppliers to launch programs for local content development in the communications and information technology sector at their companies, Alaoudah added.

He also noted that localization in the communications and information technology sector is “the hardest” due to high reliance of only two exclusive manufacturers worldwide, not only in Saudi Arabia, a matter which poses a challenge to increasing targets.

The group plans to boost local content by 2% over the next four years. It set a list for the manufacturing investment opportunities to attract investors and open new plants in the Kingdom, which will, in turn, support the procurement process and help achieve the targets.

On the other hand, Alaoudah clarified that local content is not just a set of numbers achieved by the company. It is a national goal that backs the local production

sustainability and enhances reliance on local firms and national workforce. This, in turn, will support the sustainability of the group’s business and figures, and contribute to its expansion inside or outside the Kingdom.

Alaoudah added that stc’s local content program, Rawafed, aims since its rollout in 2018 to develop national capabilities, localize the industry, and develop digitalization and innovation. An operating system was created to ensure that all business activities in the group are institutionalized.