Standard Incentives Program supports localization, reduces reliance on imports: Official

Abdulaziz Al-Ahmadi, Deputy Minister for Industrial Development at Ministry of Industry and Mineral Resources

Abdulaziz Al-Ahmadi, Deputy Minister for Industrial Development at Ministry of Industry and Mineral Resources, said the Standard Incentives Program is one of the key enablers of industrial investment in Saudi Arabia, directly supporting the objectives of the National Industry Strategy, particularly in localization, import replacement, and investment targets.

In an interview with Argaam, Al-Ahmadi said the current phase of the program supports products locally-made products for the first time, helping reduce reliance on imported goods and reinforcing the Kingdom’s push toward exports.

The ministry has signed terms-and-conditions agreements with nine industrial projects, in addition to letters of intent with 25 other projects set to begin production soon. These projects span several sectors, including automotive, chemicals, food, and metals.

Al-Ahmadi explained that these investments will help localize value chains and related services, strengthening the growth of domestic industries and paving the way for national products to reach global markets.

According to Argaam data, the Ministry of Industry and Mineral Resources recently signed the first batch of projects benefiting from the Standardized Incentives Program in its first group — nine projects with total investments nearing SAR 2 billion.

The standardized incentives are considered a modern tool to reshape the relationship between the government and industrial investors by enhancing transparency and linking government support to the actual economic impact of projects. Beneficiary projects help boost local content, replace imports, increase non-oil exports, and rely on advanced technologies and sustainable production practices.