Saudi Arabia: Saudi Arabia’s Ministry of Industry and Mineral Resources has signed agreements for nine projects representing the first group of beneficiaries of the standard incentives for the industrial sector, with a total investment volume of nearly SR2 billion ($523 million).

This took place during a ceremony held under the patronage and in the presence of the Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef and the Minister of State, Member of the Council of Ministers, and Secretary of the Localization and Balance of Payments Committee, Hamad bin Mohammed Al-Sheikh.

In his address during the ceremony, Alkhorayef emphasized that the standard incentives program is one of the most important enablers for stimulating value-added industrial investments and empowering the manufacturing of new products, according to the Saudi Press Agency.

This contributes to enhancing localization and developing local content, and achieves the objectives of Saudi Vision 2030, which aims to make industry a fundamental pillar of economic growth and diversify the Kingdom’s production base.

The minister further emphasized that standardized incentives are a modern tool for reshaping the relationship between the government and industrial investors by enhancing transparency and linking government support to the actual economic impact of projects.

He noted that the program is based on three main principles: fairness and clarity, maximizing economic impact, and sustainability and accountability.

Alkhorayef also highlighted that the beneficiary projects will contribute to strengthening local content, import substitution, and increasing non-oil exports, in addition to relying on advanced technologies and sustainable production practices.

He affirmed that signing these contracts represents the beginning of a long-term partnership between the government and investors.

The minister called on current investors to continue submitting high-quality projects that enhance the sector’s competitiveness. He also addressed a message to potential domestic and international investors, that industrial opportunities in the Kingdom remain open, and that standardized incentives are designed to meet their aspirations and reduce investment risks.

In addition to nine agreements signed with beneficiaries of the first group of standard incentives, the ministry also delivered letters of intent to 25 projects from the second group that were qualified, with total investments approaching SR5 billion.

The ministry announced that the program has received more than 500 applications so far, while work is still underway to study more than 300 additional undertakings. It expects the total value of investments benefiting from the program to reach approximately SR24 billion, with the results of these applications to be announced in the coming period.

The standard incentives for the industrial sector aim to empower the private sector and enhance the attractiveness of Saudi Arabia’s investment environment for high-tech and value-added industries.

They represent a pivotal pillar of the industrial empowerment system, covering up to 35 percent of the initial project investment, with a maximum of SR50 million per qualified project, distributed across the construction and production phases. This ensures a sustainable developmental impact and the growth and expansion of new product industries.

It is worth noting that the Ministry of Industry and Mineral Resources and the Ministry of Investment launched the first set of incentives in January, targeting three strategic industrial sectors: downstream chemicals, automotive manufacturing, and machinery and equipment.

This was followed by the launch of the second set of incentives in June, which included additional sectors such as aviation, building materials, medical devices, and pharmaceuticals, as well as food processing, maritime industries, and mining. The aim was to increase local content, enhance supply chain competitiveness, and expand the national industrial production base.