StrategicGears-沙特阿拉伯当地内容（英）

LOCALCONTENTIN SAUDI ARABIASTRATEGIC GEARS | LOCAL CONTENT IN SAUDI ARABIA | 2CONTENTSThe Key Takeaways 3Introduction 4The What 5What is Local Content? 5Stakeholders impacted by Local Content 9Difference between Local Content and Saudisation 10The Why 11Why is Local Content important? 11 Positive effects of local content 12The How 13How is Local Content policy implemented? 13How stakeholders in Saudi can meet Local Content standards 18Case Studies 20STRATEGIC GEARS | LOCAL CONTENT IN SAUDI ARABIA | 3THE KEY TAKEAWAYSThis report presents an explainer on the Local Content policy in Saudi Arabia and addresses three fundamental questions about it: What is the policy, why is it strategically important for Saudi Arabia, and how is it being implemented? Below are the key takeaways.Saudi Vision 2030 puts forward high-level objectives for the nation's economic future, with the local content policy emerging as a lynchpin of the country's economic diversification prospects. The concept of «local content» gained prominence following its introduction by HRH Crown Prince Mohammed bin Salman upon the launch of Vision 2030. The establishment of the Local Content and Government Procurement Authority followed shortly thereafter to spearhead the development of local content policy.Local content relies on a network of interconnected monetary, fiscal, and industrial policy tools to maximize the utility of domestic resources and realize a longer-term multiplier effect. As a national policy priority for KSA, local content policy regulates the participation of domestic inputs of production, including labor, assets, goods and service, and technology, in value creation within the kingdom. The Local Content and Government Procurement Authority has introduced a mandatory list of local products that organizations in Saudi Arabia must procure domestically. This list is regularly updated, with the most recent one encompassing 1024 products in 16 sectors, spanning agriculture, pharmaceuticals, and information technology infrastructure.The successful development and implementation of local content policy in Saudi Arabia relies on the joint fulfillment of the government, firms, the workforce, non-profit organizations and consumers of their roles. One, the Government formulates, applies, and monitors the policy to ensure it is tailored to the market’s endowments and capacities. Two, firms, both local and foreign, play a crucial role by complying and adapting with requirements to source local goods and services, employ Saudi labor, build connections with local industrialists, and utilize domestic assets. Three, the Saudi workforce is well positioned to reap the benefits of local content, with the sustained effort of aligning learning outcomes with market needs via the Human Capability Development Program. Four, non-profit organizations, which can create a policy dialogue between the market, the community, and the government. And five, consumers are the driving fo