Saudi Minister of Industry and Mineral Resources, Bandar Al-Khorayef, announced the allocation of 10 billion riyals to support standard incentives for the industrial sector. This step is part of the Kingdom’s efforts to achieve industrial localization targets and enhance local production efficiency, in line with Saudi Vision 2030.
Cabinet Approval for Incentives:
The Saudi Cabinet approved the launch of standard incentives for the industrial sector as part of the Kingdom’s initiatives to achieve developmental goals and attract investments. These incentives aim to enhance the competitiveness of local industries and support economic transformation.
Incentive System Covering 35% of Initial Investment:
During the initiative’s launch ceremony in Riyadh, Minister Bandar Al-Khorayef explained that the incentives cover 35% of the initial investment cost for eligible projects. A maximum value of 50 million riyals has been set for each qualifying project.
Promoting Innovation and Technology Localization:
The incentives focus on empowering national industries, promoting innovation, and localizing modern technologies. The initiative targets key sectors, including aviation, automotive, and food industries, positioning the Kingdom as a promising global destination for industrial investments.
Strategic Distribution of Incentives Across Project Phases:
The incentives are designed to ensure balance across project phases, with 50% disbursed during the construction phase and the remaining 50% upon production commencement. This mechanism enhances project sustainability and ensures the initiative’s objectives are met.