Boosting Investments in Transformative Industries
Saudi Arabia has launched the Standard Incentives Program, allocating SR10 billion ($2.7 billion) to accelerate industrial development. Approved by the Council of Ministers in December, the initiative aims to attract high-value investments, promote localisation, and strengthen the Kingdom’s industrial competitiveness under Vision 2030.
Program Overview
Investment Support:
- The program provides up to 35% of initial project costs, capped at SR50 million ($13.3 million) per project.
- Funding is disbursed in two phases: 50% during construction and 50% during production.
Targeted Sectors:
The first phase prioritises transformative industries, including:
- Transformative chemicals
- Automotive manufacturing and parts
- Machinery and equipment
Key Features and Goals
Economic Impact:
- Expected to contribute SR23 billion ($6.1 billion) annually to GDP.
- Supports localisation, reduces imports, and strengthens the balance of payments.
Strategic Positioning:
- Utilises Saudi Arabia’s geographic location linking three continents.
- Offers investors low tariffs and strong supply chain opportunities.
Future Plans:
- Additional phases in 2025 will expand to other industries, including aviation, pharmaceuticals, and food production.
Leadership Insights
Bandar bin Ibrahim AlKhorayef, Minister of Industry and Mineral Resources, stated:
“These incentives are key to unlocking the Kingdom’s industrial potential, fostering sustainability, and positioning Saudi Arabia as a global leader in transformative industries.”
Khalid bin Abdulaziz Al-Falih, Minister of Investment, remarked:
“The Standard Incentives Program accelerates industrial growth, enabling Saudi and international investors to harness the Kingdom’s unique advantages and build resilient supply chains.”