Ministry of Industry and Mineral Resources (Saudi Arabia): Key Industrial Investment Incentives for 2025

The Kingdom of Saudi Arabia stands as a premier industrial powerhouse in the Middle East. Guided by the Ministry of Industry and Mineral Resources, the Kingdom continues to enhance its global investment appeal by introducing a forward-thinking suite of incentives designed to attract high-quality industrial ventures. Aligned with the ambitious goals of Vision 2030, the Ministry is working to elevate the industrial sector’s contribution to 33% of the national GDP. To that end, it offers a competitive mix of strategic enablers—ranging from tax and customs exemptions, streamlined access to special economic zones, and interest-free financing, to the provision of a highly skilled workforce. These targeted initiatives have cultivated a dynamic, innovation-driven industrial landscape and accelerated the realization of major investment milestones.

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First: Key Incentives Offered by the Ministry of Industry and Mineral Resources (Saudi Arabia)

1. Customs Exemptions: Applicable to raw materials, machinery, equipment, and spare parts.
2. Tax Exemptions:: Granted on raw materials and industrial equipment to reduce operational costs.
3. Labor Endorsement Services:: Simplifies labor visa issuance and reduces related administrative burdens.
4. Visa Fee Reduction: Visa issuance fees have been cut dramatically—from SAR 9,700 to just SAR 100.
5. Municipal License Exemption: Facilitates the launch and operation of industrial activities by eliminating local licensing fees
6. Civil Defense License Replacement: Enables businesses to operate under a simplified "Free Operation License," streamlining regulatory procedures.

These incentives aim to simplify regulatory processes and create a highly attractive environment for industrial investment in Saudi Arabia.

Second: Incentives from the Saudi Industrial Development Fund (SIDF)

1. Working Capital Financing (Short-Term)::
   • Up to 12 months of financing for operational needs such as inventory and accounts receivable.
   • Full loan disbursement in advance, with no additional guarantees required.
2. Loan + Ready-Built Factory / Loan + Industrial Land Programs::
   • In collaboration with industrial cities, investors are offered financial packages that include access to ready-built factories or industrial land.
   • The "Loan + Ready-Built Factory" program offers up to a 15% discount on annual rent for five years (capped at SAR 20,000 annually).
   • The "Loan + Industrial Land" program allows for deferred land payments until financing approval, easing initial financial burdens.

These initiatives are designed to strengthen domestic industry and remove barriers to financing for industrial investors.

Thirdly: Industrial Project Financing – Saudi Industrial Development Fund

The SIDF also provides long-term financing solutions covering between 50% to 75% of total project costs. Loan tenures range from 15 to 20 years, enabling long-term sustainability and growth across the Kingdom’s industrial sector.

fourthly: Incentives from the Saudi Export Development Authority

To promote global competitiveness and support export growth, the Saudi Export Development Authority offers a suite of exceptional investor incentives, including:

• Export & Supply Chain Consultancy Reimbursement:: Covers up to 55% of consultancy costs, capped at SAR 255,000.
• Buyer Visit Facilitation:: Reimbursement of up to 90% of costs, capped at SAR 50,000.
• E-Commerce Platform Listing Support:: Covers up to 70% of listing fees, capped at SAR 55,000.
• Product Registration:: Up to 50% reimbursement of registration fees, capped at SAR 55,000.
• Participation in International Exhibitions:: Covers up to 65% of participation costs, capped at SAR 300,000.
• Legal Support Services:: Reimbursement of up to 85%, capped at SAR 100,000.
• Marketing and Advertising: Covers up to 75% of advertising costs, capped at SAR 200,000.
• Product Certification:: Up to 50% of certification costs, capped at SAR 250,000.

These strategic incentives reflect the Ministry of Industry and Mineral Resources’ commitment to enhancing the competitiveness of Saudi Arabia’s industrial sector and fostering a business-friendly environment for both local and international investors.

If you wish to explore how your company can benefit from these investment incentives, we invite you to connect with one of our specialized attorneys in investment licensing and regulatory advisory through our Contact Us page..

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The information provided herein is for general awareness only and does not constitute legal advice or create an attorney‑client relationship. For tailored guidance, please contact Yaqeen Al‑Farasa Law Firm