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Sustainable Procurement and Supply Chain Localization under Saudi Vision 2030
Subject area: Management and Commerce · Area of research: Operations and Supply Chain Management
Abstract
Sustainable procurement in Saudi Arabia has become a practical mechanism for linking industrial competitiveness, domestic value creation and responsible supply-chain performance. This structured narrative review examines how purchasing governance, supplier development, local content measurement and sustainability criteria can be combined within energy and infrastructure supply chains under Vision 2030. Drawing on public policy documents, institutional reports and relevant procurement research published principally during 2020–2025, it distinguishes localization outcomes from purchasing preferences and considers their operational trade-offs. The review identifies five interacting dimensions: transparent sourcing, supplier capability, lifecycle value, responsible production and measurable domestic economic contribution. It proposes a staged framework linking demand forecasting and supplier qualification to collaborative capability building, contract execution, independent measurement and continuous improvement. Evidence from Saudi Arabia’s industrial-development initiatives and Aramco’s In-Kingdom Total Value Add program indicates the strategic importance of domestic manufacturing, technical skills, innovation and supplier diversification. However, local purchasing alone does not demonstrate sustainability or resilience; firms must also assess delivery reliability, labor safeguards, environmental performance, competitiveness and the quality of local value creation. The article develops an implementation scorecard and research agenda for evaluating localization without sacrificing project schedule, safety or public value.
Keywords
sustainable procurement; supply chain localization; Saudi Vision 2030; local content; supplier development; energy projects; industrial competitiveness; procurement governance
How to cite this paper
@article{1724814,
author = {Olawale Bishi},
title = {Sustainable Procurement and Supply Chain Localization under Saudi Vision 2030},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {5},
pages = {1053-1065},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1724814.pdf},
abstract = {Sustainable procurement in Saudi Arabia has become a practical mechanism for linking industrial competitiveness, domestic value creation and responsible supply-chain performance. This structured narrative review examines how purchasing governance, supplier development, local content measurement and sustainability criteria can be combined within energy and infrastructure supply chains under Vision 2030. Drawing on public policy documents, institutional reports and relevant procurement research published principally during 2020–2025, it distinguishes localization outcomes from purchasing preferences and considers their operational trade-offs. The review identifies five interacting dimensions: transparent sourcing, supplier capability, lifecycle value, responsible production and measurable domestic economic contribution. It proposes a staged framework linking demand forecasting and supplier qualification to collaborative capability building, contract execution, independent measurement and continuous improvement. Evidence from Saudi Arabia’s industrial-development initiatives and Aramco’s In-Kingdom Total Value Add program indicates the strategic importance of domestic manufacturing, technical skills, innovation and supplier diversification. However, local purchasing alone does not demonstrate sustainability or resilience; firms must also assess delivery reliability, labor safeguards, environmental performance, competitiveness and the quality of local value creation. The article develops an implementation scorecard and research agenda for evaluating localization without sacrificing project schedule, safety or public value.},
keywords = {sustainable procurement; supply chain localization; Saudi Vision 2030; local content; supplier development; energy projects; industrial competitiveness; procurement governance},
month = {November},
}