Saudi Arabia Launches SAR 10bn Industrial Incentives

Saudi authorities overseeing energy, industry and mineral resources have unveiled a package of measures aimed at accelerating industrial growth and expanding investment in the mining sector, part of wider efforts under Saudi Vision 2030 to diversify the economy.

At the center of the plan is the activation of the Standard Incentives Program for the industrial sector, backed by a total envelope of SAR 10 billion. The program covers up to 35% of a project's initial investment, capped at SAR 50 million Support is paid in two equal halves — 50% during construction and 50% during production — with funding under the program's second phase available for up to seven years.

The first phase targets transformative chemical industries, automotive manufacturing and parts, and machinery and equipment. The second phase widens eligibility to include aviation, building materials, medical devices, pharmaceuticals, food and beverages, and mineral industries.

Boosting the mining sector

For mining, a five-year royalty holiday has been introduced for new mineral extraction projects to lower upfront operating costs. Investors in mid- to downstream mineral processing within dedicated mining areas can also receive a 30% discount on industrial land fees.

Officials aim to lift capital in the mining sector from about SAR 45 billion in 2024 to nearly SAR 92 billion between 2025 and 2030, targeting internal rates of return of 20–30% for investors. Vision 2030 seeks to raise mining's contribution to GDP to SAR 240 billion by 2030, create 200,000 direct and indirect jobs, and attract around US$27 billion in new investment.

Exploration is also expanding: the minesite exploration budget rose to about US$146 million in 2025 from US$21 million in 2022, while new licensing rounds in 2025 covered 4,788 km² with committed investment of nearly SAR 366 million. A metals exchange is in the final stages of implementation to support financing in the sector.

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