SABIC asks foreign firms to contract local peers

Saudi Basic Industries Corporation’s (SABIC) procurement unit has changed its contracting policy, directing foreign players to award contracts to national companies, Okaz newspaper has reported, citing Fuad Mosa, SABIC’s general manager local content unit.

Under the new policy, international engineering firms are also required to contract national peers for implementation of mega projects.

The share of national firms will be based on the contract size and value, Mosa said, adding that small projects will be directly awarded to the Saudi companies.

SABIC’s mega projects unit is coordinating with the local content department to develop an appropriate mechanism, which qualifies national engineering firms to undertake major projects.

Major domestic firms have received official letters on government expenditure inside and outside the Kingdom, to increase the local content.