Guide for operators and device brands · Saudi Arabia
Telecom device localization in Saudi Arabia: a practical path for operators and device brands
Telecom device localization in Saudi Arabia means moving part of a device's manufacture into the Kingdom: first final assembly, testing and packaging, then circuit-board assembly, and later, design. Government policy points the same way. Vision 2030's industrial programme reports a rising share of local content in government procurement, and the ICT sector strategy aims to raise local content in the sector. This guide sets out the levels of localization, the official framework behind it and a step-by-step path for a device programme.
Why telecom device localization in Saudi Arabia is on the agenda
Four official sources explain the direction:
| Source | What it says | What it means for device programmes |
|---|---|---|
| Ministry of Communications and Information Technology, ICT sector strategy | Aims to increase local content in the sector and to localize promising manufacturing industries | The ICT sector, including the IT industry, is part of the localization agenda |
| National Industrial Strategy, Ministry of Industry and Mineral Resources | Uses the Kingdom's purchasing power to stimulate localization and to raise local manufacturers' share of government procurement | Public buying is the main lever |
| National Industrial Development and Logistics Program (Vision 2030), annual report 2025 | Local content reached 51.2% of government procurement by the third quarter of 2025. LCGPA added 449 products to the mandatory list in 2025, bringing it to 1,670 | The list of products that agencies must buy locally keeps growing |
| Regulations on Preference for Local Content | Defines a national product as any product manufactured in the Kingdom, and local content as spending in the Kingdom through national elements | A device's manufacturing location matters, and how much of the work is local matters too |
These sources set the direction. They do not say that a specific device category is covered by a specific rule. Check the current mandatory list and the tender documents for that.
Four levels of device localization
| Level | Done in the Kingdom | Still done abroad |
|---|---|---|
| Import and local configuration | Configuration, provisioning, storage and distribution | The whole device |
| SKD assembly | Completion of partly built sub-assemblies, testing, firmware loading and packaging | Circuit boards and components |
| CKD assembly | Circuit-board assembly with SMT and DIP processes, as well as the SKD work | Components and chips |
| Local design (ODM) | Product design and development, as well as manufacture | Chips and most components |
Each level puts more work, equipment and people into the Kingdom, and each takes longer to set up. Few programmes jump straight to the top. SKD vs CKD: what each stage means for network devices
A practical path for a device programme
- Pick the devices. Start with devices bought in volume over several years with a stable design, such as ONT for fibre rollouts or 5G CPE for fixed wireless access. Small or one-off orders are usually better imported.
- Decide who owns the design. In an OEM programme you keep the design and firmware; in an ODM programme the factory's design becomes your product. OEM vs ODM for network devices
- Choose the starting level, and plan the next one. Agree which level applies in each contract year, and what must happen before the next level applies to your device.
- Plan the approvals. The Communications, Space and Technology Commission runs a device approval service. Agree who holds the approval for the locally built model and what re-approval a change of build location triggers.
- Prepare the procurement evidence. Buyers may ask for the factory's local content certificate, proof of national origin and the factory's registration for the product. Collect these per model before you bid. The mandatory list of national products explained
- Build first units, then volume. Judge the first units against your acceptance criteria before volume production starts, and keep model and version records that tie each delivery to its documents.
What operators and device brands each need to settle
Operators' device teams
- which devices in the rollout plan are bought in enough volume to localize
- how local content requirements in your own procurement apply to customer devices
- who owns the firmware, provisioning and update route
- how devices from a local line and from import can run side by side during the transition
Device brands and vendors
- which models to move first, and which stay imported
- whether your design and firmware can be built by a partner factory under an OEM contract
- how a locally built model is registered and approved under your brand
- how a later move from SKD to CKD changes the documents, components and qualification work
What localization does not change
- Approvals still apply. A locally built model needs its approvals, just as an imported one does.
- Local content is measured, not declared. LCGPA measures it under its methodology; a supplier cannot set the figure. Local content certificate: what it measures
- Chips are a separate industry. Device localization means assembly and, later, design. It does not mean chip fabrication.
Where IK Semiconductor fits
IK Semiconductor (Interkey Semiconductor) is an Interkey group company that assembles network devices in Riyadh for telecom operators, device brands and integrators.
- Stage today: SKD. Partly built sub-assemblies are completed, tested and packaged in Riyadh, with local customisation and branding agreed for each programme.
- Next stage: CKD, planned for 2028, adds circuit-board assembly with SMT and DIP processes.
- Long-term: ODM, with in-house product design and intellectual property development.
- Model: OEM. You bring the design and specification, and the line builds to it.
- Device families: ONT, 5G CPE and Mesh Wi-Fi are listed as the factory's available SKD product lines, ready for manufacturing partnerships; 5G MiFi is a planned line.
- Certificates: ISO 9001, ISO 14001 and ISO 45001. IK Semiconductor also holds a local content certificate issued by LCGPA.
- Mandatory list: IK Semiconductor is listed on LCGPA's mandatory list for government procurement. Whether a listing covers a specific device is checked per product on LCGPA's platform.
IK Semiconductor does not fabricate chips.
Questions buyers ask
Is SKD assembly real localization?
It is the first level. Final assembly, testing, firmware loading and packaging take place in the Kingdom, while circuit boards are assembled elsewhere. CKD adds board assembly.
Which telecom devices are worth localizing first?
Usually the ones bought in the largest volumes over several years with a stable design, such as customer-premises devices for fibre and fixed wireless rollouts.
Does a locally assembled device automatically meet local content requirements?
No. The product category, the factory's registration for the product, proof of national origin and, where required, a local content certificate all need to be checked against the current rules.
Do we lose control of our design if we localize?
Not under an OEM contract: the design and firmware stay yours, and ownership of test fixtures is written into the contract.
Can production move from another factory to Riyadh?
If you own the design and firmware, it can be assessed. Send the specification, test plan and fixture details, and check which approvals need re-qualification.
Plan your localization path
Tell us the device, the annual volume over the contract, the local content requirement you need to meet and the date units must be in the field. We will reply with what the Riyadh line can take on at its current stage and how the programme could develop as the factory moves to CKD.
info@interkey-sc.com.sa · +966-11-2180999 · +966-55-3475469 · Riyadh, Saudi Arabia
Sources (checked 2 November 2026)
- ICT Sector Strategy summary, Ministry of Communications and Information Technology
- National Industrial Strategy, Ministry of Industry and Mineral Resources
- National Industrial Development and Logistics Program, Annual Report 2025 (Vision 2030)
- Regulations on Preference for Local Content, Ministry of Finance (English translation; the Arabic text governs)
- Device approval service, Communications, Space and Technology Commission