Dear Esteemed Chamber Subscribers,
May the peace, mercy, and blessings of Allah be upon you.
Asharqia Chamber extends its warmest greetings to you and would like to inform you that it has received the letter of the Federation of Saudi Chambers No. (45548427/18), dated (18/11/1447 AH), referring to the letter of the Local Content and Government Procurement Authority No. (1/47301/21), dated (14/9/1447 AH), regarding Article (Fifteen) of the Regulations on the Preference of Local Content, Local Small and Medium Enterprises, and Companies Listed on the Capital Market in Works and Procurement, issued by Council of Ministers Resolution No. (245), dated (29/3/1441 AH) (the “Preference Regulations”), concerning the setting of a minimum baseline for local content in the application of the local content weighting mechanism in the financial evaluation, and the exclusion of a bidder that does not submit a local content baseline in its technical proposal in accordance with the tender documents where a minimum baseline has been set. With reference to Article (Eighteen) of the Preference Regulations, which provides for the application of the local content weighting mechanism in the financial evaluation in a number of cases, including government works and procurement, as determined by the Authority, that do not fall within the scope of high-value contracts, the Authority advises that the following has been decided:
- Government entities shall, starting from April 1, 2027, apply the local content weighting mechanism in the financial evaluation in management consulting tenders, works, and procurement with an estimated cost of ten million (10,000,000) Saudi riyals or more, and shall require a minimum local content baseline of (30%) in their tenders.
- Government entities shall, starting from January 1, 2028, apply the local content weighting mechanism in the financial evaluation in management consulting tenders, works, and procurement with an estimated cost of five million (5,000,000) Saudi riyals or more, and shall require a minimum local content baseline of (30%) in their tenders.
- Government entities shall, starting from April 1, 2027, apply the local content weighting mechanism in the financial evaluation in information technology services tenders with an estimated cost of ten million (10,000,000) Saudi riyals or more.
For any inquiries, please contact the Authority’s unified call center on (19915).
Please accept our sincere regards and appreciation.