Local Content

From enhancing the national economy to supporting local industries, we see local content as an opportunity to create sustainable impact

We Recognize the Vital Role That LC plays

In boosting the economy and supporting industries within the Kingdom. We are committed to providing comprehensive services to develop and enhance local content that aligns with your aspirations and market requirements, from initial assessment and preparation for certification to creating effective strategies for local content development. With our extensive experience, we strive to maximize the benefits for your business.

What is Local Content?

Local content is an economic strategy to enhance national output (Growth Domestic Product) by increasing local spending and encouraging national components to participate in financial activities.

Local content involves employing the local workforce, utilizing locally produced goods and services, and enhancing domestic production and technology transfer within the Kingdom.

Local content policies aim to increase national output and reduce dependence on oil. They seek to maximize the use of national resources, contribute to the creation of new job opportunities, improve productivity, and advance local technology. These efforts collectively enhance the value added to the national economy and reduce import dependence.

 

 

Measuring Local Content Refers to the Extent of the Entity’s Contribution to the Local Economy

Your Business Prosperity Starts Here, Where Well-Planned Strategies Meet Local Content

Local Content Services

At KHCPA, we offer a comprehensive range of local content services to help companies and entities achieve their local content goals.

Local Content Consulting

We provide specialized consultations to develop and implement effective strategies to increase local content. These consultations include analyzing the current situation, identifying opportunities and challenges, and providing recommendations to improve performance and boost the local content score during the local content audit that is performed at the enterprise level.

Developing Local Content Policies

We assist you in formulating and developing local content policies and procedures that align with your entity’s strategic objectives, contributing to high efficiency in meeting regulatory requirements

Monitoring and Measuring Local Content

We provide periodic monitoring and measurement services to track your entity’s progress in achieving local content goals. We provide detailed reports and identify areas for improvement.

Local Content Review and Local Content Baseline

As an accredited company by the Local Content Authority, we assume the role of local content auditor until companies get Local Content Certified, which enhances their chances in government competitions.

Periodic and Final Local Content Reports

We assist you in complying with regulatory requirements by submitting periodic or final local content reports at both the contract and entity levels, including minimum local content threshold or local content score in commercial evaluation mechanisms according to the agreed-upon procedures.

Measuring Target Local Content Percentage

We determine the target local content percentage by analyzing historical and future project costs and accurately categorizing expense, we establish realistic target percentages, protecting entities from fines of up to 10% of contract values in governmental and quasi-governmental projects if the target percentage is not met.

Preparing Local Content Reports

We prepare comprehensive periodic reports that detail your entity's progress toward achieving local content goals. These reports include detailed data and statistics, performance analysis, and recommendations for continuous improvement. They also help track performance and ensure companies adhere to strategic plans.

Local Content Planning and Model Development

We help clients develop strategic plans to enhance local content over the long term and develop local content models and templates. Our services include setting objectives, implementing plans, and developing mechanisms for measuring and evaluating the entity’s progress.

Every challenge

Every Challenge Opens a New Door... Start Your Journey to Enhancing Local Content With Us

What Sets Us Apart?

Deep and Diverse Expertise

We have a team of local content approved auditors specializing in different local content areas. Our staff possesses extensive and diverse experience in providing local content services and consultations to companies of various sizes, ensuring high quality and efficiency.

Advanced LC Strategies

Our experts adopt and implement the best financial strategies to enhance local content scores. We work closely with clients to develop and execute mechanisms that elevate local content in their entity’s operations.

Support and Follow-Up

We provide ongoing support and specialized consulting to ensure continuous improvement in local content. We also offer constant follow-up and support until the local content baseline is issued and respond to any inquiries from the authority during the certification process.

Rapid Delivery

Through our extensive experience, we ensure a swift review process for the entity’s Local Content Baseline, avoiding any unwanted delays. This helps you avoid potential fines and enables your entity to participate in governmental competitions before the certificate expires.

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Why Might Your Entity Need Local Content Services?

Current Status Analysis

A comprehensive analysis of the current status of local content in your entity clarifies areas for improvement and the current status of any imposed compliance requirements. It allows the entity to enhance its position in future financial evaluations for governmental and quasi-governmental competitions.

Issuance of Local Content Baseline

The Local Content Certificate is a crucial requirement for qualifying in supplier registration programs with many major companies and governmental or quasi-governmental entities. The certificate plays an essential role in commercial evaluation scores.

Improving Local Content

Improving local content enhances the entity’s ability to increase its commercial evaluation score, leading to better opportunities in governmental and quasi-governmental competitions.

We’re Here to Answer All Your Questions

Clear answers that support your financial business with confidence and professionalism.

Local content is an economic strategy that measures how much a business actually contributes to the national economy through employing Saudi nationals and spending on locally produced goods and services. It is a key pillar of Vision 2030, which aims to diversify the economy, reduce dependence on imports, and create national job opportunities. A company’s local content level directly affects its competitiveness in government and semi-government tenders and bids.

The Local Content and Government Procurement Authority (LCGPA) is the government body responsible for regulating and monitoring the implementation of local content policies in both the public and private sectors in the Kingdom. It issues approved certificates and oversees the auditing of local content data for organizations through accredited firms. KHCPA is officially accredited by the Authority to carry out auditing work and issue local content certificates.

The Local Content Certificate is an official document issued by LCGPA following a review of the organization’s data by an accredited auditing firm such as KHCPA. It gives the organization priority in qualifying for government tenders and increases its score in the financial evaluation within competitive bids. It is also a basic requirement for registration with many major companies and government and semi-government entities.

Penalties for not achieving local content targets in government projects can reach up to 10% of the contract value, which can be a very significant amount in infrastructure and large-scale projects. This makes advance planning essential so that realistic and achievable targets are set before entering any competitive process. KHCPA helps identify these percentages accurately through analysis of historical and projected costs to protect the company from penalties.