The Importance of Local Content in GCC; Gulf Petrochemicals and Chemicals Association

Co-written with Dr. Raed Kombargi, Dr. Yahya Anouti, and Anthony Yammine

GCC nations are investing heavily in infrastructure projects. To avoid much of this investment going abroad to foreign contractors, GCC governments have local-content policies that seek to steer infrastructure spending toward local providers. In too many cases, however, these efforts do not reach their targets as the approach is marred by conceptual biases among policymakers. To combat these biases, policymakers should rely on analytical and behavioural safeguards: analytically, taking a granular approach towards the data that informs procurement spending; and behaviourally, by carefully scrutinizing policy recommendations through adversarial debate and external expert reviews.