Saudi Arabia Launches Standard Incentives Program to Attract Global Industrial Investors
It’s no secret that the Kingdom of Saudi Arabia is in the throes of diversifying its economy and advancing towards its Vision 2030 goals of new tourist hotspots, global events and increased sustainability.
However, one area that is perhaps most crucial to this evolution is the offering of international business investments, with Saudi providing an abundance of natural resources and opportunities for investor expansion in the country.
The Saudi government fully supports foreign investment in the Kingdom. In fact, its Ministry of Industry and Mineral Resources in collaboration with the Ministry of Investment, launched the Standard Incentives for the Industrial Sector, in January of this year.
The Standard Incentives for the Industrial Sector provides enablers to innovative projects that will grow the Kingdom’s industrial capacities. The initiative is currently open to all sectors and focuses on fostering investment in products that are currently not produced locally in the Kingdom, encouraging diversification and self-sufficiency.
The Kingdom is going full steam ahead on its effort to accelerate the development of the country’s industrial sector but understands that it cannot do this completely alone. The Standard Incentives also aligns with Saudi Vision 2030, the National Investment Strategy, and the National Industrial Strategy, positioning the Kingdom as a competitive manufacturing hub for the region.
A key objective of the Standard Incentives for the Industrial Sector is to maximize the Kingdom’s industrial competitiveness and attract investors by offering sustained financial and operational performance enablement for up to seven years, throughout both the construction and operational phases, enabling manufacturing projects. The program provides up to 35% of the eligible initial investment, with a cap of SAR 50 million, ensuring sustainable industrial growth.
The Standard Incentives for the Industrial Sector is open to a wide range of businesses, including sole proprietorships, joint liability companies, limited partnerships, joint ventures, joint stock companies and limited liability companies.
To qualify, projects must establish a new facility or expand an existing one to manufacture products not currently produced in Saudi Arabia, demonstrate a minimum equity participation of 25% in the initial investment and maintain a financially sound position evaluated through a creditworthiness assessment.
For investors, the Standard Incentives for the Industrial Sector presents an opportunity to establish competitive manufacturing operations in a rapidly growing economy, while enabling Saudi Arabia in its mission to become a global leader in industrial innovation.
Investors can apply for Standard Incentives through the Senaei Platform where applicants go through an initial screening and detailed assessment process:
https://industry.sa/en/home
Naif Alotaibi
Ministry of Industry and Mineral Resources
+966 50 531 8694
naif.alotaibi@fleishman.com
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