The optimism exemplified by the Royal Decree issued last Thursday in Saudi Arabia to establish a body for local content and government procurement through six benefits will reflect positively on the economy in the Kingdom.
Hisham al-Askar, a researcher in economic affairs and a lawyer specializing in corporate and securities systems, said that the establishment of the local content and government procurement commission achieves a number of 6 ambitious goals in Saudi Arabia, including that the decision to establish would activate the participation of economic enterprises in the domestic product and increase the demand for Local content.
Al-Askar told Al-Arabiya.net that the authority will contribute to raising the economic growth rate of the industrial sector.
The TRA is expected to play a role in enhancing the transparency of procedures by standardizing government procurement in a way that ensures fair competition and high competition among companies to provide better service at competitive prices.
The SCTA is expected to have a very important role to play in accelerating the pace of technology transfer with diversifying the customer base, sharing risks through financing and joint ventures, increasing innovation and modernization opportunities and enhancing competitiveness.
Al-Askar predicted that the authority will have a direct impact on reducing the industrial import bill and reducing operating costs related to government purchases such as storage and transportation.
He added that it is important to establish this authority that the government procurement is a key driver for the creation of new markets for startups as well as small and medium-sized companies and the presence of the Authority will contribute to strengthening this trend and reflected on the national economy and provide job opportunities.
The Custodian of the Two Holy Mosques King Salman bin Abdul Aziz issued a number of royal orders last Thursday, including the establishment of a body called the "local content and government procurement", and has a board of directors to appoint its president by royal order.
The Custodian of the Two Holy Mosques also issued a royal order appointing Dr. Ghassan bin Abdulrahman Al-Shebl as Chairman of the Local Content and Government Procurement Authority.