Saudi Arabia has introduced a $2.66 billion Standard Incentives Program to accelerate growth in its industrial sector and bolster global competitiveness. Officially unveiled at a high-profile ceremony featuring ministers, senior officials, and business leaders, the initiative marks a significant step following its approval by the Council of Ministers last month.

The program provides qualifying projects with up to 35% coverage of initial investment costs, with a maximum cap of $13.3 million per project. The support is evenly distributed between the construction and production phases, ensuring comprehensive assistance throughout the development process.

The program will be rolled out in phases, initially targeting transformative chemical industries, automotive manufacturing and parts, and machinery and equipment, with additional sectors to be announced throughout 2025.

He explained that the program aims to attract high-value industrial investments by leveraging the Kingdom’s strategic location, open market, and low customs tariffs. Alkhorayef also emphasized the program’s focus on local content and job creation, contributing to reduced imports and a stronger balance of payments.

He noted that the incentives would encourage the establishment of new industrial facilities across the value chain, strengthening local supply chains. Al-Falih projected that the program could generate an estimated $6.1 billion annually in GDP from the targeted projects.

The program aligns with Vision 2030’s objectives for the industrial sector, focusing on transformative chemicals, aviation, automotive, food, medical devices, pharmaceuticals, and machinery and equipment.