Co-written by Dr. Raed Kombargi, Dr. Yahya Anouti, and Anthony Yammine
Local content policies are becoming widespread amongst developing economies, with nearly 300 local content requirements in place in non-OECD nations. GCC countries are following suit, investing in huge infrastructure development projects with the hopes of seeing benefits to local suppliers. Although there is compelling logic behind these policies, GCC countries need to ensure that they are founded in objective, fact-based judgment. Frequently, policymakers face a growing sense of urgency and public pressure to deliver results. In their haste they often give way to biases in reasoning and evaluation that yield policies that fall short of their goals. GCC governments therefore need to think logically about how to balance the need to localize manufacturing while pursuing sound economic policies.