The rise of local content requirements and policies (LCRs) in resource rich countries across the world, especially in Africa and the Middle East, presents a classic example of the complex tensions between economic rationality and political rationality in the domestic-level implementation of international investment law. While LCRs could provide a tool for governments to generate economic benefits for the local economy, LCRs may be incompatible with international trade and investment treaty obligations. This study develops a profile of the critical intersections and trade-offs between domestic level LCRs and international investment law. It demonstrates how inappropriately designed and implemented LCRs could result in a misalignment of a country’s fiscal policies and sustainable development goals, and may ultimately serve as disincentive to foreign investment. It then identifies innovative legal strategies to reform and address these misalignments and inconsistencies.