Dr. Jarosław Kola
Mr. Robert Sołdyński
DOI: https://doi.org/10.65271/HJJD6777
Abstract:
This article offers a comparative analysis of local content requirements (LCRs) in public procurement, drawing on the contrasting legal and institutional frameworks of the European Union and the Kingdom of Saudi Arabia. While the EU has traditionally treated LCRs with suspicion due to the foundational principles of its internal market—particularly the prohibition of discrimination based on origin—recent geopolitical developments and rulings by the Court of Justice of the European Union have opened new avenues for their reconsideration, especially in relation to third-country suppliers. In contrast, Saudi Arabia has embraced a robust localisation policy as a central pillar of its Vision 2030 development strategy. The study explores key regulatory instruments deployed by Saudi authorities, including the Mandatory List of National Products, price preference mechanisms, weighted evaluation algorithms, and minimum local content thresholds, all of which promote domestic industry and strategic self-sufficiency. Particular attention is given to the role of Saudi Aramco and its IKTVA programme as well as Shareek Program as an examples of corporate-led local content policy. The analysis demonstrates that, despite differing systemic premises, Saudi Arabia’s approach provides a rich source of regulatory innovation and strategic insight, which could inform the EU’s evolving procurement policy. The findings underscore the untapped potential for mutual learning in EU–Saudi economic relations and advocate for a more open and pragmatic dialogue on integrating developmental objectives within procurement frameworks.
Key Words: Local Content Requirements, Public Procurement Law, Vision 2030 (Saudi Arabia), EU Trade and Procurement Policy