{"id":7504,"date":"2026-06-01T11:52:03","date_gmt":"2026-06-01T11:52:03","guid":{"rendered":"https:\/\/alhamli.com.sa\/?p=7504"},"modified":"2026-06-01T12:43:27","modified_gmt":"2026-06-01T12:43:27","slug":"importance-of-local-content","status":"publish","type":"post","link":"https:\/\/alhamli.com.sa\/en\/blog\/importance-of-local-content\/","title":{"rendered":"The Importance of Local Content in the Medical Sector: A Comprehensive Guide to Issuing Baseline Certificates and Achieving Compliance"},"content":{"rendered":"

The <\/span>importance of local content <\/span>in the Kingdom of Saudi Arabia is growing day by day, particularly in vital areas such as the medical and pharmaceutical sectors. Compliance with local content requirements has become an essential pillar of the regulatory and compliance framework linked to government tenders and licensing. In this context, Abdullah Al-Hamli & Partners Co. provides specialized services to help enterprises develop gradual strategies that efficiently achieve compliance and operational sustainability.<\/span><\/p>\n

To learn more about local content initiatives and programs and their role in supporting the national economy, you can visit the<\/span> Local Content and Government Procurement Authority.<\/span><\/a><\/p>\n

The Importance of Issuing a Local Content “Baseline Certificate” for Medical Sector Enterprises:<\/span><\/h2>\n
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Local Content<\/figcaption><\/figure>\n

Issuing a<\/span> Local Content<\/span> “Baseline Certificate” has become an essential and mandatory requirement for several sectors, including enterprises operating in the pharmaceutical, medical devices, and pharmacy fields. This procedure is far from a mere administrative requirement; l<\/span>ocal content and supply chain regulations in Saudi Arabia<\/span> represent a strategic pillar aligned with Saudi Vision 2030. Furthermore,<\/span> the importance of local content <\/span>lies in being a fundamental prerequisite approved by competent authorities, required across various licensing and regulatory compliance procedures within the healthcare sector, and a key indicator of a <\/span>company\u2019s investment readiness through localization and governance.<\/span><\/p>\n

This mandate is based on the “Preference Regulation for <\/span>Local Content<\/span>, Local Small and Medium Enterprises, and Capital Market-Listed Companies in Procurement and Contracts, ” a cornerstone supporting economy localization plans and enhancing supply chain efficiency within the Kingdom of Saudi Arabia. These requirements are also directly linked to local content programs across mega-projects in the Kingdom, which aim to increase the contribution of national products and services in vital sectors, including the medical and pharmaceutical industries.<\/span><\/p>\n

Specifically, the regulation mandates that enterprises\u2014including pharmacies engaged in government procurement or dealing with medicines listed on the Mandatory List\u2014obtain a “<\/span>Local Content<\/span> (Baseline) Certificate” from the Authority. This certificate determines their percentage of contribution to the national economy when bidding for government tenders or health sector-related contracts.<\/span><\/p>\n

Furthermore, Article (24\/9) of the Executive Regulations of the Law of Pharmaceutical Establishments and Preparations supports local content compliance trends within the private sector. It requires pharmacies to review the sales percentage of locally manufactured medicines at the end of each fiscal year in accordance with the mechanisms approved by the Authority, thereby contributing to the <\/span>localization<\/span> of pharmaceutical industries and enhancing reliance on local suppliers.<\/span><\/p>\n

Therefore, we advise all pharmacies and medical establishments to conduct early compliance checks and work on issuing their <\/span>local content certificates<\/span> to ensure regulatory readiness and capitalize on opportunities related to government tenders and mega-projects.<\/span><\/p>\n

Choose Your Local Content Consulting Partner, Not Just a Ratio Auditor<\/span><\/h2>\n

The role of a specialized consultant is not limited to merely auditing and measuring the <\/span>local content<\/span> ratio, whether for issuing the “Baseline Certificate” or at the contracts and projects level. Rather, their role extends to being a strategic partner that supports the enterprise in achieving full compliance and enhancing its readiness for tender pre-qualification requirements and various localization programs. This is especially vital given the growing i<\/span>mportance of local content <\/span>and <\/span>supply chain regulations<\/span> in Saudi Arabia, and their direct link to government tenders and mega-projects.<\/span><\/p>\n

Furthermore, <\/span>the Ministry of Industry and Mineral <\/span><\/a>Resources supports efforts to localize industries, enhance supply chain efficiency, and increase the contribution of national products across the Kingdom’s vital sectors.<\/span><\/p>\n

First: Pre-Process Advisory Services<\/span><\/h3>\n