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Saudi procurement adopts AI and localization
The procurement system in Saudi Arabia is moving towards expanding reliance on digital solutions and artificial intelligence, with the aim of improving operational efficiency and localizing procurement professions. On June 2, 2026, the Ministry of Human Resources and Social Development raised the target localization rate in procurement-related jobs within the private sector to 70%, to enhance the participation of national cadres and meet market needs. Additionally, the Local Content and Government Procurement Authority strengthened the presence of national products through a mandatory list including over 1,500 products across 16 strategic sectors, aiming to increase demand for local products and stimulate industrial capacities. Data shows an increase in the efficiency of government spending, with more than 105 billion riyals allocated to sustainable expenditure, an 11% reduction in project delays, and widespread automation achieved within the unified government procurement platform, all focused on improving procurement processes and managing contracts electronically.
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