Egypt

Law No. 5 of 2015 concerning the Preference for Egyptian Products in Government Contracts was issued and published in the Official Gazette in January 2015. The law applies to procurement and project contracts concluded by units of the state’s administrative apparatus (ministries, departments, and agencies), local administration units, public authorities, public sector companies, and companies in the public business sector.

The law grants a 15% price preference to locally manufactured products in government tenders.

It also clearly defines a product with sufficient Egyptian industrial content as any industrial product where the local component constitutes more than 40% of the product’s cost. This percentage is calculated by deducting the value of imported components from the total cost of the product.

Kuwait

According to Kuwaiti Law No. (49) of 2016 on “Public Tenders”, Article (62) states:
“Subject to international and regional agreements concluded with the State of Kuwait and the principle of reciprocity, public entities shall give priority to local products. The council or relevant authority in supply tenders must award the contract to national products if they meet the specifications and conditions, and the price does not exceed the lowest price offered for similar imported products by a percentage specified in the executive regulations.”

Products must conform to the specifications of the GCC Standardization Organization approved by the purchasing state, or national specifications if available; otherwise, international standards apply. Substitution of local products with imported ones post-award is only allowed with council approval.

Foreign contractors implementing government projects—either directly or as subcontractors—are not allowed to establish production units to supply project needs and must purchase all materials from national products, if available. Violation leads to penalties as per Article 5.

Decree No. (30) of 2017 issuing the Executive Regulations of Law No. 49/2016, Article (40), mandates awarding contracts to national products when their price does not exceed the lowest comparable imported product price by more than 15%.

Qatar

Law issued by Emir Sheikh Khalifa bin Hamad Al Thani outlines:

• Article 1:
  • National Products: Produced in Qatar and considered national under Qatari law.
  • Products of National Origin: At least 40% value added from any GCC country and 51% GCC ownership, proven via a certificate of origin.
  • Government Entities: Ministries, public institutions, agencies, and companies with ≥51% government ownership.
• Article 2:
  • Price preference:
    • National products: 10% over foreign products
    • Products of national origin: 5% over foreign products
    • If national product is unavailable, products of national origin are preferred 10% over foreign products.
  • Price comparisons are based on delivery to government warehouses, and any customs exemptions for foreign goods must be added for comparison.
• Article 3: Government entities must source all needs from national or nationally-originated products.
• Article 4: Contracts must obligate suppliers/contractors to buy materials from national or nationally-originated products. Violations incur a 20% fine on procurement value.
• Article 5: Consultants must specify local product requirements in designs/specifications. Failure results in penalties under the contract.
• Article 6: Foreign contractors cannot establish production units and must purchase all supplies locally, or from products of national origin.
• Article 7: All government tenders and contract templates must comply with these priority rules.

Observation:
The Qatari legislator strongly supports economic development, granting a 10% preference to national products over foreign, and 5% over GCC products. If local products are unavailable, GCC-origin products get 10% preference. Even customs-exempt imports are adjusted for fair comparison.

Saudi Arabia

Cabinet Decision No. 245 (Hijri 1441/3/29):

• Article 10:
  All government entities must apply price preference for national products (not in mandatory lists). Assume the foreign product price is 10% higher than its quoted price; this percentage may be increased with approval.
• Article 12:
  Contractors must give priority to national products for all materials/tools used in project execution.

Jordan

National industries are granted a 20% price preference (up from 15%) in government tenders, enhancing their competitive edge.

The President of the Amman and Jordan Chambers of Industry praised the Cabinet’s decision, emphasizing its role in economic sustainability and strengthening the national industry as a pillar of the economy.

United Arab Emirates

Industrial law mandates giving national industries a 10% price advantage over foreign ones in government projects.

Contracts must include clear provisions obligating suppliers/contractors to purchase national products. Any contractor providing false product information may be banned for two years from dealing with government entities.

GCC products are given a 10% preference over foreign products. If the adjusted foreign product price exceeds or equals the national product, preference is given to the national product.

Government bodies must fulfill all procurement needs from national products, and may resort to imports only if local supplies are insufficient, ensuring quality and delivery conditions are met.

Algeria

Presidential Decree No. 247-15:
Article 83 promotes national production by granting a 25% preference margin to Algerian-origin products or companies majority-owned by resident Algerians for all contracts mentioned in Article 29.

Proof must be provided via a certificate issued by the relevant Chamber of Commerce and Industry.

Morocco

The “National Preference System” requires government bodies to use Moroccan products in public contracts.

A 15% price increase is added to foreign bids to give priority to national enterprises, cooperatives, and self-employed individuals.

Preference is also given to traditional and manufactured Moroccan materials, with contract documents explicitly requiring this. Imports are only allowed when no suitable Moroccan alternative exists, and justification must be provided.

Tunisia

Decree No. 825 (1999):
Tunisian-origin products are preferred in supply contracts if they meet quality standards and their price does not exceed foreign equivalents by more than 10%.

A certificate proving at least 40% Tunisian value added is required, issued by the relevant Chamber of Commerce and Industry.

For publicly funded projects with foreign cooperation, preference margins are applied as per financing agreements.

Bahrain

Parliament approved a law granting 15% price preference to national products and 10% to GCC-origin products in government procurement.

GCC products are treated as national products under the Unified Economic Agreement of the GCC, meaning no additional preference is given between GCC member states.

Palestine

Cabinet Decision No. 4 of 2013:
Enacted to prioritize national products in public tenders and government procurement across industrial, agricultural, and extractive sectors. Based on several relevant laws and the national interest, the regulation enforces the purchase and use of Palestinian-made goods.