ENABLERS

A program to provide training support to private sector establishments to raise the skills of their employees. This meets the needs of the private sector through electronic training, in cooperation with government agencies and academics.

An employment support program provided by the Human Resources Development Fund. The program aims to support research and jobseekers in the private sector. The fund bears a percentage of the employee’s wages, and includes support for all the jobs in the private sector for full-time. The program adds additional support in regions and cities with fewer job opportunities, less female employment. It provides support to persons with disabilities, and is for small, medium and micro enterprises.

The Tamheer program is an on-the-job training program for Saudi graduates from local and foreign universities and graduates of institutes and colleges who hold technical, health, and administrative diplomas. It aims to train them in government institutions and distinguished companies in the private sector so that they can acquire the expertise and skills necessary to prepare them to participate in the labor market.

The applicant/trainee has to be:

MODON oversees more than 36 industrial cities. Each industrial city has a field administration that supervises the daily needs of investors and supervises the operation and maintenance of the site and the construction projects in the industrial city. Moon has introduced different products that enhance its role and responsibility as one of the pillars of national industry empowerment and leadership.

MODON provides developed infrastructure and services such as electricity, water and others in different areas in all regions of the Kingdom that meet the needs of industrial investors.

MODON provides ready-built factories for investor partners who own small and medium enterprises. It has equipped production halls targeting clean and light industries.

The E-MAZAD is a leading platform for conducting bidding operations and offering assets to be sold easily and safely for the industrial cities in the Saudi Authority for Industrial Cities and Technology Zones (MODON).

The Royal Commission for Jubail and Yanbu supervises the operation of 4 industrial cities in each of Jubail, Yanbu, Jizan and Ras al-Khair. Meeting highest international standards to be the best option for investors in the petrochemical and energy-intensive industries. RCJY follows Comprehensive Management methods, leading the way for the Kingdom and the Arab region. The Royal Commission oversees nine sectors, namely; comprehensive planning, basic infrastructure, operation and maintenance, investment promotion, security and safety, health and community service, education, workforce training, and environmental protection.

ECZA enhances the Kingdom’s global competitiveness by launching and enabling a range of cities and special economic zones that provide an attractive regulatory environment for investment. ECZA supports targeted competitive incentives and enablers, highly efficient integrated government services, and a stimulating living environment with global quality of life standards. The lunch took place in four special economic zones, including:

Sectors of Opportunity:

Sectors of Opportunity:

Sectors of Opportunity:

In line with supporting promising small and medium-sized industrial enterprises, the SME Scale-Up product was launched to provide financial facilities to SMEs with proven success records. This allows them to increase their production capacity and reach the growth and expansion that resonates with their aspirations. This offering is available for both new and existing SIDF investors.

Tawteen program is set to facilitate, enhance, and finance supply chain localization opportunities of the Kingdom’s industrial sector. To achieve this, SIDF established partnerships with leading companies in the Kingdom of Saudi Arabia to enable the switch to source locally manufactured products and spare parts. Through preferential financing solutions, the Tawteen program will help stimulate investment activities and support the national and local content strategy.

In collaboration with Commercial Banks, SIDF has introduced the Letter of Credit as a default payment mechanism to Clients with preferred terms and conditions.

Financing the incremental working capital needs (account receivables, inventory and account payables) to aid the growth of projects by extending short-term loans with a maximum financing tenure of one year.

The Saudi Industrial Development Fund has launched phase one of the Acquisition Finance Product, which aims to fund acquisitions for local companies to acquire local targets in SIDF financed sectors with a clear added value to Saudi Arabia.

SIDF finances capital expenditures aimed at improving the operational value of the project, including production lines, services, buildings, IT systems, safety equipment upgrades, vehicles, and warehouses.

SIDF offers this service to projects, through a set of different requirements, procedures, and stages, ranging from short to long term loans for various purposes.

The “mandatory list” is a list of national products that the contractor must commit to purchase from national manufacturers in conjunction with a government agency. The list aims to develop national industries and products that have the ability to meet the needs of government projects.

This mechanism aims to give a price preference to national products. This is directly applied by the government agency in the supply contracts, and the contractor is obligated to apply it in his contracts with his subcontractors. At the end of the contract, the contractor submits a report confirming his commitment to the share of national products during the contract period. Fines are also imposed on the contractor in the event of default in the share of national products.

This mechanism aims to define a minimum required for local content at the project level. It applies to some projects, determined by the Local Content and Governmental Procurement Authority and the Spending Efficiency Center. It is applied to high-value contracts. Competitors provide a percentage of local content, no less than the minimum required, and must clarify whether or not the company is listed in their submitted offers. This is included in the financial evaluation according to an equation that determines the winner of the competition.

In the financial evaluation, this mechanism grants a price weight equivalent to 60%. The remaining 40% includes:

This mechanism allocates weight to the local content and to companies listed on the financial market during the financial evaluation phase. An accounting formula determines the highest-ranking competitor.

In the financial evaluation, this mechanism grants a price weight equivalent to 60%. The remaining 40% includes:

Industry localization and knowledge transfer agreements are agreements directed to investors who own leading technologies around the world to motivate them to transfer technology and knowledge to the Kingdom in exchange for a government purchase guarantee, the percentage and duration of which are agreed upon according to a feasibility study that considers the investment returns on the government commitment as well as on the investor.

Customs duty exemption on authorized imports for industrial establishments, such as machinery, equipment, and spare parts imported for industrial use.

An exemption is applied to products that are not available through local manufacturers/suppliers, or in case the local supply does not meet the required specifications.

Military factories licensed by the General Authority for Military Industries are exempted from value-added tax.

In order to achieve SABIC’s localization agenda and local industry development, SABIC is initiating “Nusaned” –its first integrated localization engine to achieve Saudi Vision 2030.

Iktva (in kingdom total value add) provides a level playing field for suppliers through consistency and transparency in application and process. Uniform evaluations for both service and material suppliers will be consistent across the company, creating supplier-focused partnerships, and investment stability and assurance achieved through annual assessments.
moreover, iktva program has the potential to help companies develop new products, services and technologies through partnerships in and outside of the Kingdom.

Investment Opportunities Platform promotes the establishment of state-of-the-art local manufacturing facilities in Saudi Arabia to comply with local content requirements. The annual opportunity size exceeds $16B. National Companies and Tier-1 OEMs/EPC contractors are encouraged to buy locally manufactured goods and services in order to meet the iktva targets which will benefit the potential investors.