The Saudi government recently invested $2.66 billion (SR10 billion) into the launch of the Standard Incentive Program (SIP). The program is aimed at encouraging business and investment into key transformative industries as a pillar in Saudi Arabia’s efforts to pursue its Vision 2030 initiative to diversify the economy.

The first stage of these investments is the allocation of SR10 billion to activate the Industrial Sector and encourage local production of industrial equipment.

The program aims to provide up 35% of financial support in Industrial projects that drive Saudi Arabia towards their goals to enhance the Kingdoms global competitiveness. 

What are the key benefits of setting up an Industrial License in Saudi?

There are a number of benefits to choosing to set up an industrial license in the Kingdom. The support and financial investments available to businesses who setup in this sector is vast and by far one of the most sought after industries for the Kingdom.

1. Industrial licenses allow for 100% foreign ownership, eliminating the need for a local partner.
2. Government organisations like the Saudi Industrial Development Fund (SIDF) provide loans, grants, and technical assistance for businesses in the Industrial sector.
3. Industrial cities and zones have been established where all industries are required to operate. MODON, the Saudi Industrial Property Authority, is responsible for developing and managing these cities and zones.
4. The Industrial Center provides support for investors in the Industrial sector throughout the entire investment process
5. By producing products locally, the Made in Saudi Program creates significant opportunities for businesses to expand their reach and promote their products both domestically and globally.
6. There is a five-year exemption from expat residency fees for the industrial sector based on number of employees. Currently, there is one year remaining to make use of this fee exemption, it remains valid only until the end of December 2025.
7. Saudi Arabia's population and purchasing power present a substantial market opportunity and surrounding GCC countries access.

By taking advantage of these incentives and programs investors can greatly benefit from establishing their industrial operations in Saudi Arabia. With the governments vision and commitment, coupled with the support and infrastructure it positions the Kingdom as a prime destination for industrial investment.

If you are looking to setup your business and obtain an industrial license in KSA, you can reach out to us for assistance and guidance on the process. Contact us via the inline form below, email KSA@SovereignGroup.com or call T: +966 (0)535 377 578 and we would be glad to assist.