To promote economic localisation, the Saudi government has introduced several guidelines and policies, including the Nitaqat system for labour, the Regional Headquarters Program for investment, and the Industrial Participation Policy for procurement overseen by the General Authority for Military Industries (GAMI) since 2019. The Economic Participation Program, introduced on 14 December 2023 under the Local Content and Government Procurement Authority (LCGPA), aims to enhance benefits from government procurement in the non-military sector, while the Industrial Participation Policy focuses on military procurement. This Practice Note mainly analyses the Economic Participation Program in government procurement, and provides a brief about its application, the calculation of economic participation, related incentives and penalties.

• GAMI: General Authority for Military Industries.

• GPA: World Trade Organisation Agreement on Government Procurement.

• LCGPA: Local Content and Government Procurement Authority.

• WTO: World Trade Organisation.