Alkhorayef activates ‘localization of industry, knowledge transfer’ as new government contracting method

Log of Local Content & Government Procurement Authority

Bandar Alkhorayef, Minister of Industry and Chairman of Local Content & Government Procurement Authority (LCGPA), announced activating the contracting method for the localization of industry and knowledge transfer, as a newly-introduced government procurement method in the new Government Tenders and Procurement Law.
 

This came during a virtual meeting organized by the LCGPA today, July 6, under the theme "We Localize, to Industrialize", SPA reported.
 

Alkhorayef stressed that the new method contributes to realizing the objectives of Vision 2030, by providing new industries, developing local supply chains, and developing government procurement and contracting methods. It also contributes to rationalizing government spending and advancing government procurement.
 

Additionally, contracting the localization of industry and knowledge transfer was approved in the new Government Tenders and Procurement Law as a modern procurement and contracting method, managed and supervised by LCGPA in cooperation with the competent authorities, Alkhorayef said. He indicated that this method represents a qualitative leap in the development of local content through attracting major international companies to establish factories in the Kingdom, which will create more job opportunities, as well as contribute to transferring knowledge and technology to the Kingdom and creating new supply chains.
 

Alkhorayef also stated that the method will achieve a set of strategic goals, as it will meet the government demand for the beneficiaries in a shorter time, at a lower cost and higher quality.
 

Elsewhere, Abdulrahman Al-Samari, CEO of LCGPA, said the authority will announce soon a number of agreements to localize industry and transfer knowledge in different sectors, after having conducted a feasibility study for the localization of these products, in cooperation with the Government Expenditure Efficiency and Projects Authority (EXPRO), which was approved by the Ministry of Finance.
 

He also pointed out that the agreements include the percentages of government agencies’ procurement of the industry products or knowledge, noting that the agreements will also ensure that the transfer of knowledge does not entail a monopoly in such industry or knowledge.
 

Meanwhile, it is expected that the authority will announce later the first agreements on the localization of industry and transfer knowledge and provide the opportunity for companies to apply for them.