Prime Highlights
- The standard industrial incentives program will help boost industrial investments, support new products, and strengthen local production, aligning with Saudi Vision 2030.
- The approved projects aim to increase local content, reduce reliance on imports, raise non-oil exports, and promote sustainable and high-tech industrial practices.
Key Facts
- The first group of nine projects represents nearly SR2 billion ($523 million) in investment, while the second group includes 25 projects worth about SR5 billion.
- The program initially targeted chemicals, automotive, and machinery sectors and has now expanded to aviation, medical devices, pharmaceuticals, food processing, maritime industries, and mining.
Background
Saudi Arabia’s Ministry of Industry and Mineral Resources has signed agreements for nine projects under the Kingdom’s standard industrial incentives program, representing a total investment of nearly SR2 billion ($523 million).
The signing ceremony was held under the patronage of Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef, alongside Minister of State and Secretary of the Localization and Balance of Payments Committee, Hamad bin Mohammed Al-Sheikh.
During the event, Minister Alkhorayef said the standard incentives program will help boost industrial investments and support the production of new products. He added that the initiative supports Saudi Vision 2030 by increasing local production, developing local content, and diversifying the country’s industrial sector.
“The program is built on principles of fairness, transparency, economic impact, and sustainability,” Alkhorayef said, noting that the initiative reshapes the relationship between the government and industrial investors while supporting long-term partnerships.
The approved projects are expected to increase local production, reduce reliance on imports, raise non-oil exports, and use modern technologies and sustainable practices. Investors are invited to submit more projects, with opportunities open to both local and international participants.
In addition to the nine agreements, the Ministry issued letters of intent to 25 projects in the program’s second group, with total investment nearing SR5 billion. Since its launch, the initiative has received over 500 applications, with more than 300 additional projects under review. The ministry expects total investments benefiting from the program to reach approximately SR24 billion.
The standard incentives cover up to 35% of the initial project investment, with a maximum of SR50 million per qualified project. The program started with chemicals, automotive, and machinery industries and now also includes aviation, building materials, medical devices, pharmaceuticals, food processing, maritime, and mining.
The incentives help the private sector attract investment and support modern industries, boosting Saudi Arabia’s position as a regional industrial hub.
