Key Takeaways
- • stc group achieved a 53% local content score in 2026, exceeding the Local Content and Government Procurement Authority's ICT sector benchmark of 41% by 12 percentage points, demonstrating significant progress in localization objectives.
- • Rawafed, stc's dedicated local content program, recorded a 50.69% local content score, substantially above the 40% ICT sector benchmark, reflecting the program's effectiveness since its 2018 launch in driving sustainable local content development.
- • Local content expenditure exceeded $10 billion, with growth of more than 43% compared to the ICT sector reference standard, positioning stc as a leading investor in domestic economic contribution within the telecommunications and technology sector.
- • The achievement reflects stc's strategic commitment to Saudi Arabia's economic diversification, with local content requirements now weighted at minimum 30% in vendor financial bids for government procurement, creating measurable impact on private sector growth and GDP contribution.
Summary
stc group reported a local content score of 53% as of 2026, significantly outpacing the Local Content and Government Procurement Authority's established benchmark of 41% for the ICT sector. This 12-percentage-point spread underscores the telecommunications and technology conglomerate's material progress in meeting national localization requirements and reinforces its position as a leader in supporting Saudi Arabia's economic diversification agenda.
The company's Rawafed program, established in 2018 as the primary vehicle for developing sustainable local content initiatives, achieved a score of 50.69%—also surpassing the sector benchmark of 40%. The program has evolved into a platform supporting dialogue on local content policy and fostering opportunities for private sector growth, with particular emphasis on developing domestic talent and enabling regional innovation within the ICT ecosystem.
Financial commitments to local content exceeded $10 billion in the measured period, reflecting growth exceeding 10% compared to 2020 baseline figures and 43% above the ICT sector reference standard established by the authority. These expenditures demonstrate stc's substantial capital allocation toward domestic procurement, supplier development, and local workforce investment—metrics increasingly material to institutional investors evaluating corporate social responsibility and economic impact frameworks.
The regulatory environment in Saudi Arabia has reinforced these objectives through formal procurement requirements, including a minimum 30% weighting of local content scores in vendor financial bids for government contracts. This structural incentive framework aligns stc's commercial strategy with national policy objectives, creating durability in the company's localization investments and reducing downside risk to these initiatives from policy reversal.
The company's Rawafed program, established in 2018 as the primary vehicle for developing sustainable local content initiatives, achieved a score of 50.69%—also surpassing the sector benchmark of 40%. The program has evolved into a platform supporting dialogue on local content policy and fostering opportunities for private sector growth, with particular emphasis on developing domestic talent and enabling regional innovation within the ICT ecosystem.
Financial commitments to local content exceeded $10 billion in the measured period, reflecting growth exceeding 10% compared to 2020 baseline figures and 43% above the ICT sector reference standard established by the authority. These expenditures demonstrate stc's substantial capital allocation toward domestic procurement, supplier development, and local workforce investment—metrics increasingly material to institutional investors evaluating corporate social responsibility and economic impact frameworks.
The regulatory environment in Saudi Arabia has reinforced these objectives through formal procurement requirements, including a minimum 30% weighting of local content scores in vendor financial bids for government contracts. This structural incentive framework aligns stc's commercial strategy with national policy objectives, creating durability in the company's localization investments and reducing downside risk to these initiatives from policy reversal.
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