Asharqia Chamber: Approval of Local Content Preference List Historic Decision Supporting the Vision 2030
Officials at Asharqia Chamber described the Cabinet's approval of the list of preferences for local content, small and medium enterprises and companies listed on the stock market, on Tuesday, November 26, 2019, as (historical supports the objectives of the Kingdom's Vision 2030), and ensures in terms of expansion and continuity of national factories and small and medium enterprises, on the one hand. Others contribute to stimulate all local companies to switch to supply the contribution to the national economy.
They also extended their sincere thanks and appreciation to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, His Highness the Crown Prince, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, and the Local Content Authority for their great and positive efforts to promote local content in the national economy.
(Vitality and effectiveness in the cycle of the national economy)
The Chairman of the Asharqia Chamber, Abdul-Hakim bin Hamad Al-Ammar Al-Khaldi, said that the approval of this preferential list of local content, prepared by the Local Content and Government Procurement Authority in cooperation with the relevant authorities, represents one of the most important stimulating steps taken by the Government of the Custodian of the Two Holy Mosques and His Highness the Crown Prince. in order to maximize the added value of the projects involved in the Kingdom's vision 2030.
He explained that this preferential regulation of local content, SMEs and companies listed in the financial market in business and procurement carries with it many benefits on the economic level, as it brings vitality and efficiency to the national economic cycle, when the domestic product is preferred, giving priority to both enterprises Government or strategic companies, this means additional support for the investor and the local trader, which drives him to more production, and even creativity in providing the product with the required specifications, noting that the end result of all this is to raise the level of performance in economic life.
Al-Khaldi added that the new decision not only included the enhancement of the stock market situation, which is going through its best periods, the most fertile and the most productive, to enter the largest oil company in the world to this market, pointing to the IPO numbers encouraging more investments in this market, which is This decision is an encouraging sign for the Kingdom's economic situation. This decision encourages investment in the stock market. Companies are transformed from closed, individual or family companies to joint-stock companies.
(A step in the right direction)
Another part, Board Member and Chairman of the Committee of Industry and Energy in the Ashaqrai Chamber, Ibrahim bin Mohammed Al-Sheikh, said that the decision of the Council of Ministers to approve the regulation and its enhancement of local capabilities and products, and give priority to the preference of national products, is a step in the right direction, It complements several initiatives and programs, which are in line with the Vision 2030's objectives, and provide wider opportunities for the private sector through new procurement mechanisms and methods that will give preference to local content, and give SMEs the price advantage in business contracts.
Commenting on the inclusion of the issue of preference for SMEs and listed companies in the government competition and procurement system, Al-Sheikh said that this step is a pioneer and distinct, as it supports our development options, aimed at strengthening the position of SMEs in the national economy, and encourage companies to Becoming a shareholder, increasing the volume of investments, and injecting more liquidity into the markets, this of course has great consequences for the national economy movement, as it opens more revenues for citizens, and opens the prospects for work for family and individual companies to become Contributed to ensuring its continuity and productivity, which represents a positive overall and public outcome.
(The construction sector is one of the most beneficial sectors)
Hamad Bin Hamoud Al Hammad, a member of the Board of Directors of Asharqia Chamber and Chairman of the Contracting Committee, explained that the new decision is a real and direct supporter for the local investor, whether it is a factory, a trader, or a contractor, and that the preference for the small enterprise will maintain it and ensure its continuity in the market.
On the other hand, Al-Hammad said that the decision in all its details gives additional opportunities for a wider role for the private sector in development, and thus contribute to the GDP, and achieve the added value of the national economy and the most prominent features of the provision of the national commodity and support, and provide and promote job opportunities, all in favor of the national economy and supports the comprehensive resettlement strategy targeted by the Kingdom's vision 2030.
(It limits the leakage of funds abroad ratio)
Hani bin Hassan Al-Afaliq, Chairman of the Chamber's Commercial Committee, explained that the historic decision issued by the Council of Ministers will support the commercial movement in the Kingdom and will deepen relations between all parties of the development process (consumer, producer, port, and merchant). Companies (giants), producer (national factories), outlet (contracting companies), trader (commodity marketer), and if this cycle has local content, capital movement will be pumped into the national economy and will reduce leakage Obligatory to deal with the national product.
He added that the Cabinet's decision supports small and medium enterprises, which means strengthening their position in the national economy and opening the horizons of work towards them, thus becoming one of the most important tributaries of localization in goods and services, and then national forces. Confirms the vision of the wise government, as a vital indicator of economic growth, and thus attract domestic and foreign investment, as well as being a guarantee of the continuity of companies in the tender, especially family and individual companies, which may stop with the departure or stop its owner or first owners, hence the support of the transformation option means to achieve greater transparency and control, development and follow-up investment in the Saudi market.
