Government-controlled enterprises in Saudi Arabia are increasingly introducing local content requirements for foreign firms. Aramco’s “In-Kingdom Total Value Added” program, for example, strongly encourages the purchase of goods and services from a local supplier base and aims to double Aramco’s percentage of locally-manufactured energy-related goods and services to 70 percent by 2021. Saudi Arabia’s military is reforming its procurement processes and policies to incorporate new Saudi employment and localized production goals. The SAG’s Vision 2030 program calls for 50 percent of defense materials to be produced and procured locally by 2030, and simultaneously seeks comparable increases in the number of Saudis employed in this sector.
Saudi Arabia continues to move toward adherence to a single standard, which is often based on International Organization for Standardization (ISO) or International Electrotechnical Commission (IEC) standards, in technical regulations to the exclusion of other international standards, such as those developed by U.S.-domiciled standards development organizations (SDOs). Saudi Arabia’s exclusion of these other international standards, which are often used by U.S. manufacturers, can create significant market access restrictions for industrial and consumer products exported from the United States.
Reference
Saudi Arabia-Market Challenges retrieved from https://www.export.gov/article?id=Saudi-Arabia-Market-Challenges
Performance and localization requirements retrieved from https://www.export.gov/article?id=Saudi-Arabia-Market-Challenges
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