Local Content Tenders Hit SR63bn in Q2 2026

Government tenders subject to local content mechanisms reached about 8,600 tenders in the second quarter of 2026, with a combined value of roughly SR 63 billion (about USD 16.8 billion). The figures underline the growing role of local content requirements in public procurement across the Kingdom.

Local content in government purchasing is overseen by the Local Content and Government Procurement Authority (LCGPA) and applied mainly through the Etimad e-procurement platform. Etimad is the mandatory electronic channel for federal-level tenders, procurement, contract management, budgeting and payments, and for viewing active and awarded tenders.

Suppliers must register on Etimad as vendors, complete their profile and classification, and then search and submit bids through the online portal, where tenders can be filtered by status and by government entity. For many tenders under local content rules, bidders are required to obtain and attach a Local Content Certificate and state their targeted local content percentage at the contract level within the technical proposal.

How the rules work

A minimum local content requirements mechanism applies to high-value contracts of at least SR 25 million, excluding supply contracts. In these cases, financial evaluation assigns 60% weight to price and 40% to local content and related factors. Local small and medium enterprises are granted a 10% price preference in contracts that are neither supply nor high-value contracts.

Where contracts are assessed under local content performance rules, a fine of up to 10% of the contract value can be imposed if the achieved local content percentage falls below the targeted figure stated in the bid.

As of 2026, LCGPA has introduced and increased minimum local content percentages for products on the Mandatory List, phased in across designated sectors including pharmaceuticals, construction, transportation and logistics, furniture, cybersecurity and IT. Overall, tenders on Etimad incorporating local content mechanisms have surpassed SR 316 billion in value, with an implementation rate above 94% of total tender value — a trend that expands opportunities for local suppliers and SMEs.

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