RIYADH: Building capabilities in local content will not only serve the local market but will also help Saudi Arabia play a stronger role in the supply chain globally, according to Saudi Minister of Industry and Mineral Resources Bandar Ibrahim Alkhorayef. 

In an exclusive interaction with Arab News on the sidelines of the Local Content Forum, Alkhorayef noted that his ministry is benefitting from the concept of local content. 

“Local content is a concept that would definitely be an enabler for the industry. It would be an enabler for existing installations, to come up with new capacities to improve their performance in sales and profitability,” said Alkhorayef. 

He added that local content will increase both local and international investments in Saudi Arabia. 

“It (local content) is an important tool to attract investors and build capabilities. At the end of the day, we are great believers that building the capabilities will allow us not only to serve the local market but also to export and be part of a stronger supply chain globally,” he further said. 

Alkhorayef pointed out that the small and medium enterprises sector has great focus when it comes to the enablers of local content.

“The majority of the tools we design are giving favorable weight to SMEs. In addition, we are working very closely with large companies to create their own programs,” he said. 

Earlier, during his speech at the event, Alkhorayef said the goals outlined under Saudi Vision 2030 require a unique business model. 

“The goals outlined in the Vision 2030 cannot be achieved using traditional methods, and the vitality of local content comes into the picture at this juncture,” Alkhorayef noted.

“This concept represents a comprehensive umbrella under which several elements fall, starting from the product to services, personnel, training and technology,” added the minister.

The minister added that the proportion of local content reached 46 percent of the total spending among companies of the Council on goods and services for the year 2020 with an estimated value of SR113 billion ($30.1 billion). 

He further noted that the ministry is empowering national factories through the mandatory list of national products, which will benefit nearly 4,000 factories, and contribute SR20 billion to the national economy.