Local content guide · Saudi government procurement
Local content certificate in Saudi Arabia: what it measures and where locally assembled devices fit
The local content certificate in Saudi Arabia is issued by the Local Content and Government Procurement Authority (LCGPA). It states an establishment's local content score for a named financial year and the date the certificate expires. LCGPA issues it on the basis of the establishment's own disclosure and a report from an approved audit firm. This guide explains what the score measures, how the certificate is obtained and where it is used, based on LCGPA's published material and the procurement regulation. It also explains how buying network devices assembled in Riyadh relates to your own score.
What the local content score measures
Saudi Arabia's procurement regulation defines local content as the total spending in the Kingdom through national elements. In LCGPA's published material, the score is built from four elements:
| Element | How LCGPA describes the calculation |
|---|---|
| Labour | Total salaries of the Saudi workforce, plus part of the salaries of the non-Saudi workforce |
| Research, development and training | Spending on research and development and on employee training |
| Assets | Spending on assets |
| Goods and services | The value of the local components used |
The detailed calculation follows LCGPA's measurement rules, which are updated over time, so work from the current versions published by LCGPA.
How to get a local content certificate in Saudi Arabia
- Choose the financial year to be measured. Each certificate names the financial year it covers.
- Prepare the disclosure under LCGPA's procedures. The certificate states that it is issued according to the Authority's procedures, on the basis of the disclosure the establishment submits.
- Have the figures reviewed by an LCGPA-approved audit firm. The certificate is issued on the basis of the establishment's disclosure and the audit firm's report.
- Receive the certificate from LCGPA. It states the score, the financial year and the expiry date.
- Share it and let buyers verify it. The certificate carries a verification link and a QR code for checking its details.
LCGPA's procedures, templates and timelines change. Check the current requirements on LCGPA's website before you start.
Where the certificate and the score are used
| Mechanism | What it does | Source |
|---|---|---|
| Local content weight in financial evaluation | In high-value contracts other than supply contracts, price carries 60% of the financial evaluation by default. The rest comes from the bidder's local content baseline, its targeted local content and, for companies listed on the capital market, that listing | Procurement regulation, Articles 14 and 17 |
| Minimum baseline | In projects that LCGPA designates, a bidder below the minimum local content baseline is disqualified at technical evaluation | Procurement regulation, Article 15 |
| Mandatory list of national products | Government agencies must buy listed national products. A minimum local content percentage in the establishment's certificate is now a condition for benefiting from the list: 233 products from 1 August 2026, more from 1 August 2027 | Procurement regulation, Articles 1 and 4; Saudi Press Agency, 17 February 2026 |
| Price preference for national products | For national products that are not on the mandatory list, the prices of foreign products are treated as 10% higher than they are | Procurement regulation, Article 10 |
The regulation calls the local content percentage that a bidder's establishment has reached when it submits a tender its "baseline". The "targeted local content percentage" is the level the bidder commits to reach by the end of the contract.
How buying locally assembled network devices relates to your certificate
Your certificate measures your own establishment's spending. Buying network devices from a manufacturer in the Kingdom is spending in the Kingdom, and the goods-and-services element is calculated from the value of the local components used. How much of a purchase is recognised as local in your measurement is set by LCGPA's measurement rules and checked by your audit firm. The supplier does not decide it.
Three points to settle with a device supplier:
- Where the work happens. Ask which assembly stage applies to the device and which steps take place in the Kingdom.
- Who you buy from. Ask for the legal entity, its registrations in the Kingdom and the documents your audit firm will need.
- Product rules. The regulation defines a national product as any product manufactured in the Kingdom. Whether a given device qualifies under a mechanism such as the mandatory list or the price preference follows LCGPA's rules for that product. If a mechanism requires buying from a factory that holds a local content certificate, ask the supplier for its certificate and check it with LCGPA.
Network devices assembled in Riyadh by IK Semiconductor
IK Semiconductor (Interkey Semiconductor) is an Interkey group company that assembles network devices in Riyadh for device brands, telecom operators and integrators.
- Today, at the SKD stage: partly built sub-assemblies are completed, tested and packaged in Riyadh.
- Planned for 2028, the CKD stage: complete assembly from individual components, including SMT and DIP circuit-board processes, which brings more of the work into the Kingdom.
- Device families: ONT, 5G CPE and Mesh Wi-Fi, with a 5G MiFi line planned.
- Management systems: ISO 9001, ISO 14001 and ISO 45001 certificates held by IK Semiconductor.
- Local content certificate: IK Semiconductor holds a local content certificate issued by LCGPA. Ask for a copy in your enquiry.
IK Semiconductor does not issue local content certificates or calculate scores. That is the work of LCGPA and approved audit firms.
Questions buyers ask
Who issues the local content certificate?
The Local Content and Government Procurement Authority (LCGPA). It issues the certificate on the basis of the establishment's disclosure and an approved audit firm's report.
How long is a certificate valid?
Each certificate states the financial year it measures and its own expiry date. Check the date on the certificate and LCGPA's current rules.
Can a supplier give us its local content score?
No. Your score is measured on your own establishment's figures. Buying from suppliers in the Kingdom affects the goods-and-services element in the way LCGPA's measurement rules set out.
How do we check that a certificate is genuine?
Use the verification link or QR code printed on the certificate.
Is the local content certificate the same as the Saudi Made mark?
No. The certificate states a score measured by LCGPA. Saudi Made is a separate national programme for products made in the Kingdom.
Does IK Semiconductor help us get a certificate?
No. Certificates are issued by LCGPA, and the figures are reviewed by approved audit firms. IK Semiconductor assembles network devices in Riyadh and can tell you which steps of the work take place in the Kingdom. If a mechanism requires buying from a factory that holds a local content certificate, ask us for IK Semiconductor's certificate.
Discuss locally assembled devices for your programme
Tell us the device, the volumes, the tender or contract it is for and the local content requirement you need to meet. We will reply with what the Riyadh line can assemble and which steps take place in the Kingdom.
info@interkey-sc.com.sa · +966-11-2180999 · +966-55-3475469 · Riyadh, Saudi Arabia