Saudi LCGPA approves local content baselines for suppliers of SABIC and SEC

Saudi Arabia’s Local Content and Government Procurement Authority (LCGPA) approved baselines for 50 main companies that supply goods and services to Saudi Basic Industries Corp. (SABIC) and Saudi Electricity Co. (SEC), Saudi Press Agency (SPA) reported citing LCGPA’s chairman Ghassan Al Shibl.

The authority approved baselines for the local content of these companies, based on a scientific methodology to calculate the facility’s local content.

The SPA report further noted that the information given is compared with the facility’s financial statements, prepared as per the criteria approved by the Saudi Organization for Certified Public Accountants.

The authority has provided a detailed guideline to help companies fill out the form properly.

The chairman added that the authority completed the approved baselines for 50 companies from various sectors during 2019, after these companies cooperated with the authority in filling out the local content measurement model.

In October, the LCGPA launched the Local Content Partnerships Initiative, according to data compiled by Argaam.

A number of agreements were exchanged between the authority and members of the Local Content Coordination Council, which includes Saudi Aramco, SABIC, Maaden, Saudi Telecom, Saudi Arabian Airlines, and SEC, along with the Council of Saudi Chambers.