Riyadh Law Review

Local Content Requirements in Public Procurement: Comparative Reflections from the European Union and Saudi Arabia

Dr. Jarosław Kola[1]
Mr. Robert Sołdyński[2]

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

 


[1] PhD in Law, Assistant Professor at Adam Mickiewicz University in Poznań (Poland), and a specialist in public procurement law, with a particular focus on the concept of local content. In 2023, he delivered lectures on this subject at the College of Law, Prince Sultan University in Riyadh. Recognised in prestigious global legal rankings such as Chambers Global and Legal 500. Recipient of the Rising Stars award by Wolters Kluwer Poland and Best International Future Lawyer by the Association Internationale des Jeunes Avocats. Attorney-at-law registered with the Regional Chamber of Legal Advisers in Poznań (Poland).

[2] MA in Arabic Studies Philology at Adam Mickiewicz University in Poznań (Poland) during which he spent two semesters at Istanbul University in Istanbul (Türkiye). He is currently enrolled as a law student at the aforementioned university. His fluency in Polish, English and Arabic facilitates his research in multilingual and multicultural legal contexts. His academic interests include comparative law, with particular focus on the legal systems of Arab countries, as well as commercial and corporate law. His current research explores the intersection of local content regulations and public procurement law in Arab countries and the European Union.

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