Buyer's guide · Local content in government procurement
The LCGPA mandatory list of national products: what government buyers must buy locally, and where network devices fit
The mandatory list is a list of national products that the Local Content and Government Procurement Authority (LCGPA) issues and updates regularly. Government agencies must comply with it, and in supply tenders a bid that does not comply is excluded. Whether a network device is covered depends on whether its product category is on the current list, which you check on LCGPA's platform. This guide summarises the official rules, then explains what local assembly means for a network device.
What the LCGPA mandatory list is, and its legal basis
The list rests on the Regulations on Preference for Local Content and Local SMEs and Companies Listed on the Capital Market in Business and Procurement Transactions, issued by Council of Ministers Decision No. 245 of 29/3/1441H. The regulation defines the mandatory list as a list of national products issued and updated by LCGPA on a regular basis. LCGPA sets the inclusion criteria in agreement with the Expenditure Efficiency and Projects Authority (EXPRO), in coordination with other government bodies.
Two definitions matter for device buyers:
- National product: any product manufactured in the Kingdom.
- Local content: total spending in the Kingdom through national elements, such as goods, services, assets, technology and workforce.
A device can therefore be made in the Kingdom while its local content still depends on how much of its manufacture happens locally.
Who must comply, and at which stage
| Stage | What happens | What it means for a network-device purchase |
|---|---|---|
| Preparing the tender | Listed items are identified in the bill of quantities, and local content requirements go into the tender documents | Check whether the device category is listed before writing the technical specification |
| Evaluation | Non-compliant bids are excluded from supply tenders and mixed tenders with supply items; in a divisible bid only the non-compliant items are excluded | Check every bidder's compliance, not only the lowest price |
| Receiving the goods | Agencies may not receive supplied products that breach the list, unless the products were exempted for the contractor | Ask for proof that the delivered models are the compliant ones |
| Contract delivery | Per LCGPA's training material, contractors must buy listed national products, including under service contracts whose scope includes listed products | Integrators supplying devices inside a project carry the obligation too |
The mandatory list and the price preference are different tools
| Tool | When it applies | Effect on a bid with an imported device |
|---|---|---|
| Mandatory list (Articles 8 and 9) | The product category is on the list | A non-compliant bid, or the non-compliant item, is excluded |
| Price preference for national products (Article 10) | National products that are not on the mandatory list | When prices are compared, the foreign product's price is treated as 10% higher; the percentage may be raised by agreement between LCGPA and EXPRO if the tender documents state it |
How a factory and its product benefit from the list
For a product to count as compliant, the factory must be registered with LCGPA for that product. LCGPA's training material lists accepted proofs of national origin, including:
- a certificate from the Saudi Standards, Metrology and Quality Organization stating that the product's origin is national
- a written declaration from the factory on LCGPA's form
- a "Saudi Made" certificate issued by the Saudi Made programme
- a "Saudi Tech" mark issued by the Saudi Made programme, for technology products
- a product registration certificate from the competent authority, where one applies
Local content certificates. In some sectors, a local content certificate is required for listed products. On 17 February 2026, the Saudi Press Agency reported that LCGPA had made a minimum local content percentage in the enterprise-level local content certificate a condition for benefiting from the list. It applies product by product: 233 products from 1 August 2026, further named products from 1 August 2027, and the rest of the list later. Check on LCGPA's platform whether your device category is covered, and from which date.
Exceptions: when buying outside the list is allowed
The buying agency, not the supplier, requests the exception and documents it. LCGPA's training material sets out the grounds:
| Ground | Evidence required |
|---|---|
| National factories cannot supply the quantity | Letters from three different national factories confirming they cannot supply the product |
| Price gap above the ceiling set in the list | Price quotations from three different national factories and three quotations for the foreign product |
| Local content baseline not met | Letters from three different factories confirming the baseline is not met |
| The project needs special specifications | Letters from three different national factories confirming they cannot meet the required specifications. An exception is not allowed only because national factories do not meet a particular quality standard, as long as they meet an equivalent one |
When the total value of a single product exceeds SAR 3,000,000, LCGPA's approval is required. LCGPA replies within 10 working days; if it does not, the request counts as approved. The agency reports approved exceptions to LCGPA every quarter.
If you expect to need an exception, collect the letters and quotations before the tender is issued.
Where network devices fit
Is the device category listed? Search the current list on LCGPA's platform by product description and code, not by brand, and use the live version rather than a PDF saved from an earlier tender.
What does "made in the Kingdom" mean for a network device? It can describe very different amounts of local work:
| Stage | Done in the Kingdom | Still done abroad |
|---|---|---|
| SKD (semi-knocked-down) | Final assembly, testing, firmware loading and packaging | Components and circuit boards |
| CKD (completely knocked-down) | Board-level assembly is added | Chips, and usually the design |
| Full local manufacture | The manufacturing chain up to the finished device | Chip fabrication is a separate industry |
Local content is not declared by the supplier. It is assessed under LCGPA's methodology for a specific product and scope of work, so ask for the certificate or assessment itself, not a percentage quoted in a sales offer.
Checklist before awarding a network-device contract
Ask the bidder, and the factory that builds the devices, for written and dated answers:
- Is the device category on the list? State the description and code checked.
- Is the factory registered for this exact product? Registration is per factory and product.
- What proves national origin? Name the document.
- Is a local content certificate required, and is it valid? Ask for the certificate and its date.
- Which model is assembled locally? Tie compliance to the model and version.
- Does the type approval cover the locally built model? Not only an imported one.
- Can the factory meet the quantity and dates? Ask for a dated capacity letter for this order.
The supplier's side: local content requirements, stage by stage
Local assembly of network devices at IK Semiconductor
If you supply network devices to government agencies or state-owned companies, assembly in Riyadh is one option. IK Semiconductor (Interkey Semiconductor) assembles network devices under OEM contracts:
- Device families: ONT, 5G CPE and Mesh Wi-Fi, with a 5G MiFi line planned.
- Stage today: SKD (final assembly, testing, firmware loading and packaging in Riyadh). CKD is planned for 2028.
- Model: we build to the device owner's design and specification, under the owner's brand if required.
- Management systems: certified to ISO 9001, ISO 14001 and ISO 45001.
- Mandatory list: IK Semiconductor is listed on LCGPA's mandatory list for government procurement.
- Local content certificate: IK Semiconductor holds a local content certificate issued by LCGPA; ask us for a copy.
Whether the listing covers the device in your tender is checked per product, on LCGPA's platform and against the documents above. Ask us which documents we can provide for your device.
Questions buyers ask
Does the mandatory list apply to private companies?
The regulation addresses government agencies. According to LCGPA's training material, their contractors must buy listed national products when carrying out those contracts. Companies in which the state holds more than 50% are covered by a separate local content regulation, so check which one applies to your organisation.
Is assembly in the Kingdom enough to comply?
No. The category must be listed, the factory registered for the product, national origin proven, and a valid local content certificate held where one is required.
Is there a PDF of the mandatory list?
The list is updated regularly. Use the current version on LCGPA's platform rather than a saved PDF.
Discuss local assembly for your tender
Tell us the device category, approximate quantity and tender or delivery date. We will tell you what can be assembled in Riyadh at the current stage.
info@interkey-sc.com.sa · +966-11-2180999 · +966-55-3475469 · Riyadh, Saudi Arabia