RIYADH. The Saudi government has unveiled a landmark SAR10 billion ($2.67 billion) Standard Incentives Program aimed at boosting industrial investment and development across the Kingdom. The initiative, approved by the Council of Ministers in December, marks a significant step in Saudi Arabia’s industrial transformation strategy.
The program offers substantial financial support, covering up to 35% of initial project investments with a ceiling of SAR50 million per qualifying project. The funding will be distributed equally, with half allocated during construction and the remainder during the production phase.
In its first phase, the program will target three key sectors: transformative chemical industries, automotive manufacturing and parts, and machinery and equipment. Additional industry segments are expected to be announced throughout 2025.
During a high-profile launch ceremony, Minister of Industry and Mineral Resources Bandar AlKhorayef described the program as the first of its kind in the region. He emphasized its role in promoting new manufacturing capabilities and leveraging Saudi Arabia’s strategic advantages, including its geographic position connecting three continents and its business-friendly environment with low customs tariffs.
Investment Minister Khalid Al-Falih projected that the program could generate approximately SAR23 billion in annual GDP from targeted projects. He highlighted how the incentives would accelerate the development of new industrial facilities and strengthen local supply chains, advancing the goals of Vision 2030 and the National Investment Strategy.
The launch event was attended by several key government figures, including Energy Minister Prince Abdulaziz bin Salman, Minister of State Dr. Hamad Al Al-Sheikh, and Minister of Economy and Planning Faisal Alibrahim, alongside representatives from major local and global companies.
AlKhorayef credited the program’s development to extensive governmental collaboration, particularly noting the role of the Local Content and Balance of Payments Committee, chaired by the Crown Prince. The initiative aims to reduce imports, strengthen the balance of payments, and increase reliance on Saudi talent.
The program aligns with Vision 2030’s industrial sector objectives, targeting promising fields including aviation, pharmaceuticals, medical devices, and food industries, alongside the initially announced sectors. These measures underscore Saudi Arabia’s commitment to achieving sustainable economic diversification and enhancing its industrial competitiveness globally.
The launch event included ministerial panel discussions and workshops exploring the program’s potential impact on Saudi industry’s future and its attractiveness to both domestic and international investors.