A local content certificate in Saudi Arabia is issued by the Local Content and Government Procurement Authority (LCGPA). It states the share of an establishment’s spending that goes to national elements inside the Kingdom. In government tenders and large projects, it can affect whether a bid qualifies, how it is evaluated, and whether it benefits from certain preference mechanisms.
This article explains what the certificate is, who issues it, how it connects to the Government Tenders and Procurement Law and the Local Content Preference Regulations, and what this means in practice for anyone buying or supplying fire, alarm and security equipment. If you are pricing a bill of quantities, AZEIDK’s technical supply of fire safety systems starts with a review of specifications, models and the documents behind each line item.
Key takeaways
- The LCGPA issues local content certificates to private-sector establishments, based on audits by audit offices the authority has qualified.
- The certificate covers the establishment. It is not a SABER conformity certificate and not a product listing such as UL or FM.
- The Local Content Preference Regulations (Council of Ministers Resolution 245) remain in force alongside the new Government Tenders and Procurement Law published in September 2026.
- The regulations’ mechanisms include a mandatory list of national products, a price preference, and baseline and minimum local content requirements in designated procurements.
- In 2026 the LCGPA made a minimum local content percentage in the certificate a condition for benefiting from the mandatory list for specific products, applied in stages.
- AZEIDK holds the Saudi Local Content certificate.
In this article
- What is a local content certificate?
- How local content links to government procurement
- The mandatory list and the minimum percentage condition
- Three different certificates: local content, SABER and UL/FM
- How the certificate affects fire and security equipment supply
- AZEIDK and the local content certificate
- Common mistakes
- Frequently asked questions
- Conclusion
What is a local content certificate?
The Local Content Preference Regulations define local content as total spending in the Kingdom through national elements such as goods, services, technology and workforce. The certificate documents that percentage for a specific establishment, calculated using the criteria and indicators the LCGPA sets.
The LCGPA’s organisational statute, published in the Umm Al-Qura gazette in 1442H (2021), gives the authority the power to set local content measurement criteria and calculation methods, to issue certificates of approved local content percentages to private-sector establishments, and to qualify licensed audit offices to audit those percentages. A company does not assign itself a figure: a qualified auditor checks its data and the authority issues the certificate.
The certificate belongs to the establishment and its activity. It does not certify a product or an installed building system, a distinction that is often blurred in supply files.
How local content links to government procurement
The core references are the Government Tenders and Procurement Law and 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 Resolution 245 dated 29/3/1441H. On 4 September 2026 Umm Al-Qura published Council of Ministers Decision 199 approving a new Government Tenders and Procurement Law. The decision keeps the Local Content Preference Regulations in force and asks the Ministry of Finance and the LCGPA to review their alignment with the new law.
The regulations set out several mechanisms, and not every one applies to every tender. What applies is what the published tender documents state.
| Mechanism | What it means | What the supplier should prepare |
|---|---|---|
| Mandatory list | A list of national products issued and updated by the LCGPA. Non-compliant bids may be excluded from supply tenders | Check whether any BOQ item is on the list and source it from a qualifying national product |
| Price preference for national products | For comparison, a foreign product is treated as priced 10% above its bid price, as set out in the tender documents | State the origin of each item and the share of national products in the bid |
| Baseline and target | In designated procurements, the establishment’s baseline and targeted local content enter the evaluation | A valid local content certificate and a plan for the target percentage |
| Minimum local content | In designated contracts, a bid whose target falls below the stated minimum is disqualified at technical evaluation | Meet the commitment and submit periodic and final local content reports during execution |
The local content plan is submitted through the LCGPA’s local content portal, and the contracting agency monitors compliance during execution. A listed product that breaches the mandatory list is not accepted unless an approved exemption applies.
The mandatory list and the minimum percentage condition
In February 2026, the Saudi Press Agency reported that the LCGPA had added a minimum local content percentage, assessed in the establishment-level certificate, as a condition for benefiting from the mandatory list. It applied from 1 August 2026 to 233 products, including ceramic and porcelain tiles, with a further group from 1 August 2027 that includes split air conditioners, water pumps, water valves, copper wires and a range of medical devices and supplies.
In July 2026 the authority announced an extension to 965 products across 14 sectors of the mandatory list, effective June 2028. It publishes the minimum percentage for each product on its official website and will review the percentages periodically.
The practical point: seeing “pumps” or “valves” in a general announcement does not mean the fire pump or sprinkler valve in your project is on the list. Classification is read from the list itself and from the tender documents, item by item.
Three different certificates: local content, SABER and UL/FM
A fire equipment supply file may contain three kinds of document, each answering a different question:
| Document | Body | Applies to | Question it answers |
|---|---|---|---|
| Local content certificate | Local Content and Government Procurement Authority | The establishment | What share of the establishment’s spending goes to national elements? |
| Product and shipment conformity certificates | Through SABER, under SASO technical regulations | Product and shipment | Does the product meet the technical regulation for market entry? |
| Listing or approval (UL, FM, LPCB) | Testing and certification bodies | A specific model | Has the model passed the tests of the named standard? |
None replaces the others. We cover SABER in SABER and SALEEM: conformity of fire safety products, listing verification in our UL, FM and LPCB verification guide, and how to organise the file in fire equipment technical documents.
How the certificate affects fire and security equipment supply
Government tenders
Read the tender documents before pricing. Is it a supply, works or mixed tender? Does it set a baseline, a minimum or a local content weighting? Does the BOQ include mandatory-list items? The answers decide which documents the contractor and the supplier must provide.
Large projects and subcontracting
When a main contractor carries a local content commitment, it needs data from its suppliers to prepare its periodic reports. It may therefore ask the alarm, firefighting or surveillance supplier for a valid certificate or a statement of item origin. The contract, not market habit, defines exactly what is required.
Private sector
The regulations do not impose the certificate on every private purchase. Some owners and developers request it as part of supplier prequalification, in which case it becomes a contractual condition.
What suppliers are usually asked for
- A copy of the establishment’s valid certificate, with its validity date checked before submission.
- The origin of each item, separating national products from imported ones.
- SABER conformity certificates for products covered by technical regulations.
- Datasheets and listing or approval certificates for the supplied model, as part of the submittal.
Where models need to be compared against these conditions, our technical selection of systems and equipment service helps balance technical and supply requirements.
AZEIDK and the local content certificate
AZEIDK holds the Saudi Local Content certificate. In Saudi Arabia it provides technical supply of fire-fighting and fire alarm equipment, alongside security, surveillance and low-current solutions; the available categories are on our products page.
The limits of what the certificate means are worth stating. It covers the establishment. It does not turn an imported product into a national one, and it does not replace the conformity certificate or listing for each model. That is why every item in our supply offer carries its own documents and stated origin, and we attach the establishment certificate when the tender or contract asks for it.
Common mistakes
- Confusing the local content certificate with a SABER conformity certificate, and submitting one in place of the other.
- Assuming the establishment’s certificate proves that everything it supplies is a national product.
- Submitting an expired certificate, or one for a period the tender does not ask for, without checking it.
- Relying on the headline of a general announcement to decide whether an item is on the mandatory list.
- Pricing before reading the local content mechanisms set out in the tender documents.
- Neglecting periodic and final local content reports on contracts that require them.
Frequently asked questions
Who issues local content certificates in Saudi Arabia?
The Local Content and Government Procurement Authority issues them to private-sector establishments, after the percentages are audited by licensed audit offices it has qualified.
Is the certificate mandatory for every supplier?
There is no general requirement for every purchase. It is needed when government tender documents or a contract call for it, and a minimum percentage in it is now a condition for benefiting from the mandatory list for specific products.
Does it replace a SABER certificate?
No. The local content certificate covers the establishment; a SABER conformity certificate covers the product and shipment under the technical regulations.
Does the new procurement law change local content rules?
The decision approving the new law keeps the Local Content Preference Regulations in force, subject to an alignment review. Each tender’s documents remain the reference for what applies.
Does AZEIDK hold a local content certificate?
Yes. AZEIDK holds the Saudi Local Content certificate and provides it with supply documents on request.
Conclusion
The local content certificate measures an establishment’s contribution to the national economy and works within a framework that includes the mandatory list, the price preference, baselines and minimum requirements. Its effect on fire and security equipment supply depends on what each tender or contract states, and it sits alongside each product’s conformity and listing documents rather than replacing them.
Preparing a supply offer for a tender with local content requirements? Send us the BOQ and tender documents, and we will review the items and the documents each one needs. Contact the AZEIDK team
