The following words and phrases - wherever they appear in this regulation - shall have the meanings specified next to each, unless the context requires otherwise:
The Authority: Local Content and Government Procurement Authority.
The Regulation: Regulation of the Authority.
The Council: Board of Directors of the Authority.
The President: President of the Council.
The CEO: Chief Executive Officer of the Authority.
Local Content: Total spending in the Kingdom of Saudi Arabia through the participation of Saudi elements in the workforce, goods, services, assets, technology, and similar areas.

The authority enjoys public legal personality and financial and administrative independence, and is organizationally linked to the President of the Council of Economic and Development Affairs. Its main headquarters is located in the city of Riyadh, and it has the right - as needed and by a decision of the Council - to establish branches or offices within the Kingdom.

The Authority aims to develop local content in all its components at the national economy level, and to enhance and monitor government procurement; to achieve developmental and financial goals in accordance with national visions, strategies, and plans, and in compliance with the relevant regulations, rules, and instructions.

For the Authority - without prejudice to the competencies and responsibilities of other entities, and in addition to what is assigned to it based on other laws and regulations - to do everything necessary to achieve its objectives, including, but not limited to, the following:
1- Developing policies, strategies, plans, and programs related to the development of local content and contributing to the enhancement of government procurement, in coordination with relevant government entities, and completing what is necessary in this regard.
2- Proposing projects for laws and regulations related to the development of local content and the enhancement of government procurement, suggesting amendments to existing ones, and submitting them to complete the legal procedures in this regard.
3- Establishing standards and indicators for measuring local content, the mechanism for its calculation, and the contribution of government procurement to achieving developmental and financial objectives, and publishing them.
4- Setting requirements and targets for local content concerning the purchases, contracts, and agreements of government entities in agreement with the Expenditure and Projects Efficiency Authority, and monitoring the performance of those entities to achieve this in accordance with the relevant legal provisions.
5- Establishing rules and instructions for the mechanism of calculating and approving local content ratios in private sector establishments.
6- Issuing certificates for the approved local content ratios for private sector establishments.
7- Qualifying licensed auditing offices to audit local content ratios in private sector establishments.
8- Identifying high-gain activities for the development of local content, and coordinating with government entities that license the practice of those activities; to ensure the establishment of local content requirements and targets on them, in accordance with applicable laws.
9- Calculating local content and setting its targets at the level of economic sectors in the Kingdom, and monitoring and updating them in coordination with relevant entities.
10- Monitoring the implementation by government entities and companies in which the state owns 51% or more of the local content requirements, in accordance with the regulations governing that.
11- Contributing to the development of government procurement operations and procedures to achieve local content targets and improve the government purchasing process, in accordance with the relevant legal provisions.
12- Participating in identifying government purchases needed by more than one government entity, and monitoring the contracting and execution procedures for the contracts and agreements concluded by the entity responsible for unified procurement; provided that their preparation is in accordance with the elements, foundations, and standards set by the Authority, without prejudice to what is stated in paragraph (4) of this article.
13- Contributing to the preparation of local content requirements in privatization projects in coordination with the relevant entities, ensuring compliance with those requirements; in preparation for taking necessary actions in this regard.
14- Encouraging the private sector to contribute to the development of local content. The Authority has the right to establish incentives and programs that contribute to achieving this.
15- Developing the tools, methodologies, and programs necessary to empower government entities, enhance their capabilities, and contribute to training national personnel regarding the development of local content and the enhancement of government procurement in coordination with relevant entities.
16- Studying policies, methods, and mechanisms of capital and operational spending in government entities; to identify opportunities for local content development and maximize the benefits from government procurement.
17- Managing matters related to contracts in which the administration is a party within the Economic Balance Program, developing them, supervising their implementation, negotiating with foreign entities and companies to transfer technology and develop local content within the framework of the program, and establishing the rules and procedures related to that.
18- Preparing studies, research, and reports related to local content, and cooperating in those studies, research, and reports with the relevant entities concerning government procurement.
19- Working with the Ministry of Finance - in coordination with relevant government entities - to establish a database for suppliers and manufacturers, and updating it, to serve the Authority's objectives.
20- Cooperating and exchanging experiences with regional and international bodies and organizations, and similar entities in other countries, and specialized consulting firms, within the limits of the Authority's competencies, and in accordance with the applicable legal procedures.
21- Representing the Kingdom or participating in its representation at regional and international bodies, organizations, and events related to the Authority's competencies, in accordance with the applicable legal procedures.
22- Proposing initiatives for the development of local content and the entities responsible for their implementation, and submitting them to complete the legal procedures in this regard.
23- Promoting awareness of local content concepts and related activities, and raising awareness among government entities, the private sector, and individuals, through communication with various media, publishing through different channels, and participating in public activities.
24- Organizing exhibitions, conferences, and workshops related to local content, and cooperating in those exhibitions, conferences, and workshops with the relevant entities concerning government procurement, in accordance with the applicable legal procedures.

• 1- The Authority shall have a Board of Directors composed of a President appointed by a royal decree, and the membership shall include:

  • A- No less than (five) members representing government entities related to the work of the Authority, with each member holding a rank not less than (excellent) or its equivalent, and their membership shall be for a period of (three) years, renewable.

  • B- (Three) specialists with experience in fields related to the work of the Authority, with each member's term lasting (three) years, renewable once.

  • C- The Chief Executive Officer.

• 2- A decision shall be issued by the Council of Ministers to specify the entities referred to in subparagraph (A) of paragraph (1) of this article, and to appoint the members mentioned in subparagraph (B) of paragraph (1) of this article; based on a proposal from the President.

The Council is the authority that dominates the management of the affairs of the Authority and conducts its matters, and it makes all necessary decisions to achieve its objectives. It has, in particular, the following powers:
1- Approving the general policies related to the Authority's activities, as well as the strategies, plans, and programs necessary for their implementation, and raising any matters that require the completion of regulatory procedures.
2- Proposing draft laws and regulations related to the Authority's activities, proposing amendments to those in effect, and submitting them for approval according to the applicable regulatory procedures.
3- Approving the organizational structure of the Authority.
4- Approving the financial and administrative regulations of the Authority and other internal regulations, provided that the approval of the administrative regulations is in agreement with the Ministry of Human Resources and Social Development, and the approval of the financial regulations and provisions with financial implications in the administrative regulations is in agreement with the Ministry of Finance.
5- Approving the establishment of branches and offices of the Authority within the Kingdom.
6- Approving the draft annual budget of the Authority, its final account, the auditor's report, and the annual report; in preparation for submitting what is required according to the applicable regulatory procedures.
7- Approving the requirements and targets for local content, as well as the mechanisms, standards, and indicators for measuring it, and cooperating in all of this with the relevant authorities concerning government procurement, without prejudice to what is stated in paragraph (4) of Article (4), and submitting this to the Council of Economic and Development Affairs for its approval.
8- Approving the rules and instructions related to the mechanism for calculating and approving the percentage of local content in private sector establishments, as well as the rules and instructions for issuing certificates of local content percentages for those establishments.
9- Approving the rules and instructions for qualifying licensed auditing offices to audit the local content percentages in private sector establishments.
10- Approving the criteria for determining activities - which government entities license to practice - that have high gains in developing local content.
11- Approving the rules and procedures for managing contracts in which the administration is a party for the economic balance program.
12- Determining the financial compensation for the services and works provided by the Authority.
13- Approving the conclusion of memoranda of understanding with the private sector to encourage its contribution to achieving local content targets.
14- Approving the engagement of research and planning centers, consulting firms, experts, and consultants to achieve the Authority's objectives.
15- Appointing an external certified auditor (or more) and an internal financial controller.
16- Approving the conclusion of agreements, protocols, and contracts, according to the applicable regulatory procedures.
17- Accepting gifts, grants, donations, endowments, and bequests, in accordance with the regulations governing that.
18- Reviewing periodic reports submitted to it regarding the progress of work in the Authority.
To achieve these competencies, the Council may form permanent or temporary committees from its members or others, assigning them tasks it deems necessary, and specifying in the decision to form each committee its chair and members. Committees may seek assistance from whoever they deem necessary to perform the tasks assigned to them.
The Council may also delegate some of its competencies to its President, any of its members, or the CEO, as required by the workflow in the Authority.

1- The Council meetings are held at the headquarters of the Authority, chaired by the President or a member representing the government entities designated by him. It is permissible, when necessary, to hold them in another location specified by the President.
2- The Council holds its meetings periodically at least (four) times a year, and whenever deemed necessary by the President or if requested by at least (one-third) of the Council members.
3- The invitation to the meeting is sent by the President in writing at least (five) days prior to the meeting, and the invitation must include the agenda.
4- For the Council meeting to be valid, the presence of the majority of members, including the President or his representative, is required. Decisions are made by a majority of the votes of those present, and in the event of a tie, the side that the President of the meeting voted for prevails.
5- The discussions and decisions of the Council are recorded in minutes signed by the President of the meeting and the attending members. The Council may use electronic means for this purpose, and a member who objects to any decision may record their objection with justification in the minutes.
6- A member of the Council may not abstain from voting, nor may they delegate another member to vote on their behalf in their absence.
7- When necessary and in urgent cases, and as deemed appropriate by the President, meetings and voting on decisions may be conducted remotely using technological means.
8- The Council, when necessary and in urgent cases, and as deemed appropriate by the President, may issue a decision by circulation, provided that all Council members agree to the decision. This decision shall be presented to the Council at the first subsequent meeting to be recorded in the minutes.
9- A member of the Council may not disclose any information they have learned about the secrets of the Authority due to their membership in the Council, even after their membership has ended.
10- The Council, or its President, may invite specialists and consultants they deem necessary to attend its meetings, without them having the right to vote.

The Authority shall have an Executive President who is appointed and dismissed by a decision of the Council based on a nomination from the President. The decision shall specify his salary and financial benefits, and he shall be responsible for managing the affairs of the Authority and conducting its business and responsibilities within the limits set by the regulations and bylaws issued accordingly, and what the Council decides. He shall, in particular, exercise the following competencies:
1- Supervising the workflow in the Authority through the approved regulations, plans, and programs.
2- Proposing general policies related to the Authority's activities, strategies, plans, and programs necessary for their implementation, submitting them to the Council, and following up on their implementation after approval.
3- Proposing the organizational structure of the Authority and the financial and administrative regulations, as well as other regulations necessary for conducting the Authority's work, submitting them to the Council, and following up on their implementation after approval.
4- Disbursing from the approved budget and taking all financial actions, in accordance with the provisions governing that and the powers delegated to him by the Council.
5- Appointing employees in the Authority in accordance with the regulations governing that, supervising them, and terminating their services.
6- Preparing periodic reports on the implementation of the Authority's plans, programs, achievements, activities, and the impediments it faces, and presenting them to the Council.
7- Supervising the preparation of the Authority's annual budget draft and its final account and annual report, and submitting them to the Council for approval.
8- Proposing the requirements and targets for local content, mechanisms, standards, and measurement indicators, as well as proposing what relates to those requirements, targets, mechanisms, standards, and indicators related to government procurement, and submitting them to the Council.
9- Proposing the rules and instructions for calculating and approving the percentage of local content in private sector establishments, and the rules and instructions for issuing certificates of local content percentages for those establishments.
10- Proposing the rules and instructions for qualifying licensed auditing offices to audit the local content percentages in private sector establishments.
11- Proposing standards for determining activities - which government entities license to practice - that have high gains in developing local content, and submitting them to the Council.
12- Proposing rules and procedures for managing contracts in which the administration is a party to the Economic Balance Program, and submitting them to the Council.
13- Proposing services and works that can be provided and their financial compensation, and submitting them to the Council.
14- Signing memoranda of understanding with the private sector after the Council's approval, or according to the powers granted to him by the Council.
15- Signing agreements, protocols, and contracts, after the Council's approval, or according to the powers granted to him by the Council; in accordance with the applicable legal procedures.
16- Representing the Authority before the judiciary, and with government entities, institutions, and other relevant bodies, as well as other entities inside and outside the Kingdom, and he may delegate others to do so.
17- Any other competencies assigned to him by the Council.
The Executive President may delegate some of his competencies and tasks to whomever he sees fit among the Authority's staff.

The members of the Authority are subject to the provisions of the Labor Law and the Social Insurance Law.

1- The authority shall have an independent annual budget.
2- The financial year of the authority is the same as the financial year of the state.