The value of contracts concluded by the government with local companies increased to about 14 billion riyals in the period from October 2023 to September 2024, as 1,517 contracts were concluded with 668 companies, which contributed to the national economy in the amount of 2.6 billion riyals. Starting from the third quarter of 2025, all companies applying for tenders are obligated to submit a local value certificate within their bids. This decision comes within the state’s endeavor to enhance the role of the private sector as a primary partner in economic development, and to increase spending on local goods and services by applying local value standards in projects. Government agencies.
For its part, the Ministry of Commerce and Industry announced industrial investment opportunities worth 2.3 billion riyals in manufacturing industries.
The local value is the percentage of the resource’s contribution to the local economy.
The local value program of the “Tawteen” initiative was designed in accordance with the Qatar National Vision 2030, by stimulating local localization plans in the energy sector in the State of Qatar.
Work methodology
In-country value changes spending processes in contracting and purchasing. Suppliers must update their contracting and purchasing strategy because the financial evaluation will be based on the supplier’s competitive price and its local value record.
Contributing to economic development
Local value encourages local investments, develops local resources and expands their scope to enhance flexibility in the supply chain and business continuity.
Local value also reduces dependence on exports given that resources will be available locally within the country, resulting in savings in logistical costs and a shortening of time.
Local value in the State of Qatar is based on the following strategic objectives in local localization: Optimum benefit from establishing sustainable local value. Raising efficiency and developing local skills and capabilities and local suppliers. Encouraging local private sector investment.
Local value encourages diversification in the gross domestic product by developing and supporting local suppliers and small and medium enterprise entrepreneurs, as well as motivating international suppliers to establish new investment opportunities in the State of Qatar.
Suppliers benefit from their contribution to the development and support of their sub-suppliers. Any cost incurred by the supplier towards developing its sub-suppliers is calculated as a 100% contribution to the local value.
It also aims to support the State of Qatar in its pursuit of global competitiveness, as the local value contributes to stimulating exports because export revenues are excluded from the calculation formula of the local value, which leads to a higher record of the local value.
Supplier development
The “Tawteen” initiative provides a supplier development program that encourages the growth and success of energy sector suppliers. One of the most prominent features of localization is the encouragement of a cooperative relationship between suppliers and energy sector companies. We believe that our suppliers represent an integral part of the energy sector and we value their important contribution to the local economy. The following are the most important initiatives of the Supplier Development Program:
Share information
It includes information on investment opportunities for the new supply chain, and expected spending, including clear data for 3-5 years of existing purchase demand, which will be provided to suppliers. Through this information, we see that suppliers can plan and conduct their business in a more efficient manner.
Work relations
The energy sector works to establish working relationships with suppliers on a regular basis through the forums it organizes. We believe that these forums provide a platform for suppliers and energy sector companies to establish mutual cooperative relationships.
Business process improvements
Certain improvements will be made to energy sector companies’ contracting and purchasing policies, standards and procedures to assist suppliers in their business dealings with us. Our goal is to increase harmonization and compatibility between policies, standards and procedures across the energy sector, and these improvements will be implemented gradually.
Support technical and commercial development
Assistance will be provided to suppliers, especially small and medium enterprises, in the technical and operational aspects of their business, in order to improve and comprehensive performance. Support will be provided wherever necessary to allow access to facilities to test and implement the experimental stages of new products and services at energy sector companies.
Developing talent and expertise
The localization initiative ensures the ability of local suppliers to meet the requirements of the energy sector on time, and with the quality required to sustain the business. The Tawteen Talent Development Program aims to support suppliers to develop workforce skills and competencies to enable them to reach the highest quality standards and meet the requirements of the energy sector. This is done through experience exchange programs with international companies through skills development training courses.