Penny AI and SAP Ariba have announced a technology partnership to advance local content in Saudi Arabia at the Supply Chain and Procurement Conference (SCPC 2026).

As local content rises to the top of the national agenda in Saudi Arabia, organisations across the Kingdom are under growing pressure to demonstrate their contribution to the local economy. 

This partnership is a direct response to that shift, bringing together Saudi innovation and German technology to deliver a fully integrated solution for Local Content management and procurement, said a statement.

Through the partnership, Penny AI’s local content solution is integrated within SAP Ariba, giving SAP Ariba customers across the Kingdom a clear, reliable way to track and manage their Local Content position from within their procurement workflows. The benefits of this integration extend across the broader SAP ecosystem, supporting organizations beyond SAP Ariba in strengthening their Local Content performance.

A partnership built around customer value

For procurement teams managing complex spend portfolios alongside their Local Content obligations, the partnership brings these two priorities closer together. SAP Ariba customers can now adopt Penny AI for Local Content as a dedicated solution that complements their existing procurement operations.

Penny AI for Local Content gives organisations real-time visibility of their Local Content contribution throughout the year. It automates local content calculation, keeps spend aligned with LCGPA's mandatory list of locally sourced goods and services, and delivers a live dashboard that reflects an organization's running score based on actual spend data from SAP Ariba. This allows teams to track performance, identify gaps early, and act on their Local Content position throughout the year rather than after a year-end audit.

Penny AI is a cloud-based Source-to-Pay (S2P) platform that helps enterprises digitise and streamline procurement from end to end. With intelligence built into every stage of the procurement lifecycle, Penny gives organizations the visibility and control to manage spend with confidence and to meet the demands of an evolving procurement landscape.

The company is headquartered in Riyadh, with offices in Abu Dhabi (UAE), Manama (Bahrain) and Derby (UK). - TradeArabia News Service