📋 Tender Overview
The Local Content and Governmental Procurement Authority has signed a cooperation agreement with Zamil Air Conditioners and Home Appliances Co. to develop and increase local content in the manufacturing sector in the Kingdom of Saudi Arabia in order to reach the highest potential and enhance domestic spending in line with the strategic goals of the two parties.The agreement was signed between the CEO of the Local Content and Governmental Procurement Authority Mr. Abdulrahman bin Abdullah Al-Samari and the CEO of Zamil Industrial Investment Co. Abdulla Mohammed Al Zamil.According to the agreement the authority will work on developing a comprehensive strategy and program for developing local content that includes proposed amendments to Zamil Air Conditioners procurement regulations and systems. The authority will also prepare a framework for improving manufacturers and suppliers that deal with the company standardizing the methodologies and measuring mechanisms of local content and defining the baseline of local content and its future objectives in the company.In addition Zamil Air Conditioners will define and identify investment opportunities to develop local content in the materials and goods produced by the company as well as its services which the authority can take advantage of to increase the percentage of local content in each of them. Additionally the company will not only share previous procurement data and expected future needs for related materials and services with the authority but also share the best practices and experiences of the two parties. These steps will enhance the local content in addition to the studies related to raising its percentage including the experiences that support localization opportunities and the transfer of technologies and skills.On this occasion Abdulrahman bin Abdullah Al-Samari stated that the signing of the agreement is a continuation of the authoritys efforts to develop local content in various sectors including the manufacturing sector which is considered a main pillar for the sustainability of economic growth. The manufacturing sectors contribution to the Kingdoms non-oil GDP reached about 7.5 in 2018 while the share of other manufacturing industries other than oil refining reached about 70 of the GDP of the industrial sector.He added that these figures reflect the importance and dynamism of the manufacturing sector in the Kingdom especially its contribution to diversifying the local industrial base. Moreover they showcase the promising opportunities of this sector to enhance local content through the participation of Saudi elements in the workforce goods services productive and technical assets and the like thereby enhancing domestic spending on these elements.Abdulla Al Zamil indicated that this agreement is a continuation of the efforts undertaken by Zamil company at various levels to support the nation by enhancing local content and increasing the percentage of Saudization to achieve the objectives of the Kingdoms 2030 vision. The agreement also comes within the framework of the authoritys initiative to increase the elements of local content in various industries including the manufacturing sectors in the Kingdom in a manner that leads to strengthening the role of the private sector in developing local content and contributing more effectively to achieving the development goals of the Kingdoms Vision 2030 especially in terms of creating job opportunities and diversifying the national economy.It is worth noting that this agreement is part of a series of cooperation agreements in various sectors signed by the Local Content and Governmental Procurement Authority with several organizations from the public and private sectors in order to develop local content and increase its share in the contracts and purchases of government sectors.
