Saudi Arabia: Closed consultation on Ministry of Finance rules regulating contracts for industry localisation and knowledge transfer

On 8 September 2024, the Ministry of Finance of Saudi Arabia closes a public consultation on the rules regulating contracts for industry localisation and knowledge transfer. The draft rules apply to private sector industries involved in localisation and knowledge transfer, particularly in sectors such as healthcare, pharmaceuticals, water, environment, food, telecommunications, and information technology, to encourage investment through government procurement. The rules outline the mechanisms for identifying and evaluating localisation opportunities, detail the contracting procedures and obligations for both government entities and private contractors and specify the incentives and exemptions available. It also addresses the implementation challenges encountered by the Authority and government entities and seeks to define the roles, responsibilities, and follow-up mechanisms clearly.