Saudi Arabia Introduces Incentive Program for Industrial Investment
Saudi Arabia is launching a SR10 billion ($2.66 billion) incentive initiative to boost industrial investments, as announced by Minister of Industry and Mineral Resources, Bandar Alkhorayef. The program is designed to be adaptable, focusing on sectors with high import reliance and limited local production.
The plan supports up to 35% of a project’s initial investment, with a cap of SR50 million per project. It targets at least 200 projects that aim to reduce imports and enhance local manufacturing capabilities with new products and technologies.
Open to both local and foreign investors, the program requires projects to align with specific targeted products and limits funding to 30% of the project’s total investment. An inter-ministerial committee reviews each project to ensure effective fund distribution.
This initiative is part of Saudi Arabia’s Vision 2030, aiming to diversify the industrial base and create a competitive manufacturing ecosystem. It particularly focuses on chemicals, automotive, and machinery sectors while remaining flexible to shift with investor interests.
Unlike past models aimed at large-scale projects, this program is designed to be accessible to small and medium-sized enterprises (SMEs), reflecting a strategic shift towards inclusivity and adaptability in industrial development.