The Kingdom of Saudi Arabia has allocated SAR 10 billion to implement the Standard Incentives Program for the industrial sector, following approval from the Council of Ministers in December. The program is designed to bolster industrial investments, drive sector growth, and enhance global competitiveness in line with sustainable development goals.
The Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, provided an overview of the program, which will cover up to 35% of the initial project investment, capped at SAR 50 million per project. The financial support will be disbursed in two stages: 50% during construction and 50% during production.
The program will be rolled out in phases, with the initial phase targeting investments in transformative chemical industries, automotive manufacturing and parts, and machinery and equipment. Additional sectors will be announced in subsequent phases throughout 2025.
Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the program’s significance, stating that it is the first of its kind in the region and aims to promote the local manufacturing of products currently imported into the Kingdom. “These incentives were developed through an exceptional effort of governmental collaboration across diverse agencies, particularly the Local Content and Balance of Payments Committee, chaired by His Royal Highness the Crown Prince, which played a pivotal role in formulating policies and directing initiatives that support industrial investments and national manpower,” AlKhorayef said.
The program also prioritises localisation and local content goals to reduce imports and strengthen the Kingdom’s balance of payments by supporting industries that utilise national resources and rely on Saudi talent.
Minister of Investment Khalid Al-Falih stated that the program aligns with Vision 2030 and the National Investment Strategy, both of which aim to attract and grow industrial investments while increasing the competitiveness of the Saudi industrial sector.
“These incentives will accelerate the emergence of new industrial facilities across the entire value chain, offering investors stronger, faster, and more cost-competitive local supply chains,” Al-Falih said. He emphasised the collaboration with the Ministry of Industry and Mineral Resources and noted that the program is expected to contribute SAR 23 billion annually to the Kingdom’s GDP from targeted projects.
The launch event also featured a ministerial panel discussion and workshops, where domestic and international firms were briefed on investment opportunities in the targeted sectors. Discussions focused on how the program supports the National Industrial Strategy and enhances the attractiveness of Saudi Arabia’s industrial sector for both local and foreign investors.
The Standard Incentives Program aligns with Vision 2030 goals by focusing on key sectors, including transformative chemicals, aviation, automotive, food, medical devices, pharmaceuticals, and machinery and equipment, reinforcing Saudi Arabia’s commitment to economic diversification and industrial development.
