New thresholds push manufacturers toward deeper localization

LCGPA raises bar for local content: The Local Content and Government Procurement Authority (LCGPA) introduced minimum local content thresholds for establishments to qualify for the mandatory list of national products in government procurement, state news agency SPA reports. The rules cover 233 items, starting with tiles in August 2026, before including other products — such as certain appliances and medical devices — in August 2027.

Why it matters: The LCGPA is shifting from a binary local-versus-foreign approach to a performance-based model, effectively deepening domestic manufacturing rather than basic assembly to retain access to government demand. Manufacturers that fall short of the new percentages risk losing bid preference from 2026 to 2027 unless they invest in local supply chains. Meanwhile, contractors will face tighter sourcing constraints, as only suppliers meeting the thresholds will qualify.

Riyadh rolls out SAR 1.6 bn road and drainage upgrades

Riyadh Municipality is putting SAR 1.6 bn into fixing the city’s friction points through road and traffic upgrades to ease congestion across the capital, Saudi Gazette reports. Works include the 15.5-km expansion of Prince Faisal bin Bandar Road, intersection redesigns, asphalt paving, neighborhood upgrades, and drainage networks in flood-prone areas. The municipality will also improve pedestrian paths, cycling tracks, lighting, public spaces, stormwater culverts, parking, and urban landscaping.

Frimex expands into Saudi healthcare with GNC acquisition

Frimex International Investment — the GCC investment arm of Yemeni conglomerate HayelSaeed Anam & Co. — acquired 60% of Riyadh-based Gulf Neo Care (GNC), which specializes in neonatal care, pharma, medical devices, and healthcare products, according to a press release. The value of the transaction was not disclosed.

Ayyan moves Al Janadriyah land into institutional fund play

Riyadh’s Al Janadriyah set for new mixed-use real estate fund: Ayyan Investment signed a non-binding MoU with Al Rajhi Capital and Sumou Holding to establish a mixed-use real estate private fund in Riyadh’s Al Janadriyah, it said in a disclosure to Tadawul. The SAR 600 mn, 83.4k sqm project will feature residential and commercial spaces, with Ayyan contributing land, Al Rajhi Capital managing the fund, and Sumou Holding acting as developer.

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