The Kingdom allocates 10 billion riyals to activate standard incentives for the industrial sector
This comes to enable industrial investments, stimulate their growth, and achieve sustainable industrial development in the Kingdom, while raising the level of competitiveness of Saudi industry globally.
The announcement stated that the standard incentives for the industrial sector include coverage of up to 35%. From the initial investment of the project, with a maximum of 50 million riyals for each eligible project, divided, in a balanced manner, into the stages of the investment project, so that it is 50%. for the construction phase, and 50?? for the production stage.
In his speech during the ceremony, Minister Bandar Al-Khorayef confirmed that the standard incentives program for the industrial sector is the first of its kind in the region, and aims to enable the manufacturing of products that are not currently manufactured in the Kingdom, and opens new horizons for qualitative industrial investments, accelerating their pace, while ensuring their sustainability in the long term. Al-Taweel also enables investors, Saudi and international, to benefit from the unique capabilities that the Kingdom possesses, such as the strategic geographical location, which connects three continents, the open market, and the low level of customs.
He pointed out that the standard incentives program focuses on achieving the goals of nationalization and local content as an essential element in achieving sustainable development, indicating that the program aims to enable industries that enhance the use of national resources and increase reliance on Saudi talent, which contributes to reducing imports and enhancing the balance of payments.
Integrated government work
Minister Al-Khorayef said: “These incentives came within a distinguished integrated government framework, with various relevant government agencies, especially the Emiratisation and Balance of Payments Committee, headed by His Highness the Crown Prince – may God protect him -, which contributed a pivotal role in formulating policies and directing initiatives.” , which enhances the empowerment of industrial investments and supports national competencies.”
For his part, the Minister of Investment explained: Engineer Khalid Al-Falih, in his speech during the ceremony, said that the standard incentives for the industrial sector are an important step towards achieving the goals of the Kingdom’s Vision 2030 and the National Investment Strategy, which aim to attract and develop industrial investments, and raise the level of competitiveness of Saudi industry.
The Minister of Investment indicated that these incentives will accelerate the process of creating new industrial facilities, at all stages of the value chain, which will provide industrial investors with stronger and faster local supply chains at a competitive cost, stressing the Ministry’s aspiration to continue the close partnership with the Ministry of Industry and Mineral Resources to build a solid and diversified industrial base. In the Kingdom, it serves the final consumer, whether in the Saudi market or in surrounding markets.
Strong industrial movement in the Kingdom
Engineer Khalid Al-Falih stated that the incentives, in their current form, represent an impetus for a strong industrial movement in the Kingdom, the impact of which, God willing, is expected to go beyond the formation of an industrial base, to reach the expected gross domestic product from the projects, which are targeted by the standard incentive package for the industrial sector, to 23 billion. riyals annually.
The launch ceremony included standard incentives for the industrial sector; Presenting a group of investment opportunities, in the targeted sectors, to national and international companies, in addition to a ministerial dialogue session, and workshops that discussed the impact of incentives in shaping the future of Saudi industry, enhancing its global leadership, and its role in enabling the industrial sector to become more attractive to national and international investments, and in achieving Objectives of the two national strategies for industry and investment.
It is noteworthy that the standard incentives for the industrial sector focus on achieving the goals of the “Saudi Arabia 2030” vision in the industrial sector, targeting a number of promising industrial sectors such as downstream chemicals, aviation, automobiles, food, medical devices, pharmaceutical industries, and machinery and equipment, to achieve integrated and sustainable economic diversification. .
Investors and those interested can view the investor’s guide to standard incentives for the industrial sector via the link, while details of the first package of investment opportunities are available through the link.
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