Hariri: France Satisfied with Investment Plan Progress

Lebanese Prime Minister Saad Hariri visits Beirut Port on Friday September 6, 2019. Dalati and Nohra photo
Lebanese Prime Minister Saad Hariri visits Beirut Port on Friday September 6, 2019. Dalati and Nohra photo
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Hariri: France Satisfied with Investment Plan Progress

Lebanese Prime Minister Saad Hariri visits Beirut Port on Friday September 6, 2019. Dalati and Nohra photo
Lebanese Prime Minister Saad Hariri visits Beirut Port on Friday September 6, 2019. Dalati and Nohra photo

French President Emmanuel Macron is satisfied with Beirut's progress on starting an infrastructure investment program, Lebanese Prime Minister Saad Hariri's press office said on Friday, a day after a French envoy criticized the speed at which Lebanon is reforming its economy.

Foreign governments and donor institutions last year pledged $11 billion in financing to Lebanon for a 12-year infrastructure investment program at the CEDRE conference in Paris, on condition that it carries out reforms.

Hariri’s office said in a statement Friday that the PM received a telephone call from Macron, who “expressed his satisfaction with the progress made towards launching the CEDRE investment projects.”

Macron called Hariri after French diplomat Pierre Duquesne concluded a four-day visit to Lebanon to assess Beirut's progress on starting work on the infrastructure projects and other reforms.

Duquesne himself said that the donors' funding offers still stand, but stressed that Lebanese authorities need to speed up reforms, pass a state budget for 2020 this year and decide which of the 250 infrastructure projects will take priority.

"Donors are still ready to help, provided that things happen in the required and right way," he said.

Funding has not yet begun to flow, he said, because Lebanon was without a government for nine months following elections last year.

"And even after (government) formation, donors continue to question the Lebanese government. This view is shared by all donors," Duquesne said.

He was also critical of how some Lebanese politicians were approaching the urgency of the economic problems in the country.

"Some people still believe that there is a miracle solution, a magical solution to solve all the problems. This does not exist."

"Time is running out and we cannot continue with the endless debates," he added.

On Monday Lebanese politicians declared a "state of economic emergency” and Hariri said the government would take emergency measures to speed up reforms, including holding more meetings.

With one of the world's highest debt burdens, low growth and crumbling infrastructure, Lebanon's economy is struggling and authorities are seeking to implement reforms to ward off a crisis.

During Thursday’s phone call, “Macron also stressed France's commitment to Lebanon's stability and security, the strengthening of its state and institutions and the importance of preserving calm on the southern border,” Hariri’s office said.

The frontier between the two countries has remained calm since Israel and Hezbollah traded fire on Sunday.



Saudi Arabia Allocates SAR10 Billion to Activate Standard Incentives Program for Industrial Sector

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
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Saudi Arabia Allocates SAR10 Billion to Activate Standard Incentives Program for Industrial Sector

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)

Saudi Arabia announced on Saturday the allocation of SAR10 billion to activate the Standard Incentives Program for the industrial sector, following approval by the government in December. The initiative seeks to enable industrial investments, spur their growth, and achieve sustainable industrial development in the Kingdom, while elevating the global competitiveness of Saudi industry.

The Ministry of Industry and Mineral Resources and the Ministry of Investment outlined key details of this newly launched incentives package during a ceremony attended by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz; Minister of Investment Khalid Al-Falih; Minister of State and Member of the Council of Ministers Dr. Hamad bin Mohammed Al Al-Sheikh; Minister of Industry and Mineral Resources Bandar Alkhorayef; Minister of Economy and Planning Faisal Alibrahim; and several other ministers, senior officials, and leaders from major local and global companies.

The Standard Incentives Program offers coverage of up to 35% of the initial project investment, capped at SAR50 million for each qualifying project. The support is divided evenly across the project lifecycle, granting 50% during the construction phase and 50% during the production phase.

The program will be introduced in successive phases, with the first targeting investments in transformative chemical industries, automotive manufacturing and parts, and machinery and equipment. Further industry segments are slated for announcement in subsequent phases throughout 2025.

AlKhorayef emphasized that the Standard Incentives Program is the first of its kind in the region, and that it aims to promote the manufacture of products not currently produced in the Kingdom.

The program opens new horizons for high-value industrial investments, accelerates their pace, and ensures their long-term sustainability. It enables both Saudi and international investors to harness the Kingdom’s unique advantages, including its strategic geographic location that links three continents, its open market, and low customs tariffs, he added.

He underscored that the Standard Incentives Program focuses on achieving localization and local content targets as core drivers of sustainable development. By empowering industries that enhance the use of national resources and bolster reliance on Saudi talent, the program contributes to reducing imports and strengthening the balance of payments.

“These incentives were developed through an exceptional effort of governmental collaboration across diverse agencies, particularly the Local Content and Balance of Payments Committee, chaired by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, which played a pivotal role in formulating policies and directing initiatives that support industrial investments and national manpower,” AlKhorayef remarked.

Al-Falih highlighted that the Standard Incentives Program is a significant step toward realizing the ambitions of Vision 2030 and the National Investment Strategy, both of which aim to attract and expand industrial investments while boosting the competitiveness of Saudi industry.

These incentives will accelerate the emergence of new industrial facilities across the entire value chain, thereby offering investors stronger, faster, and more cost-competitive local supply chains, he explained.

Emphasizing the close partnership with the Ministry of Industry and Mineral Resources, he said he was optimistic over building a robust and diversified industrial base that serves domestic and regional markets.

The incentives, in their current form, are expected to energize the industrial movement in the Kingdom, continued the minister. Projections indicate the program could generate an estimated SAR23 billion annually in GDP from the targeted projects, extending its impact beyond the creation of a solid industrial foundation.

During the official launch ceremony, a range of investment opportunities in the targeted sectors was introduced to domestic and international firms. The event featured a ministerial panel discussion and workshops that examined how these incentives can shape the future of Saudi industry, enhance its global leadership, and make the Kingdom’s industrial sector more attractive to both local and foreign investors. The discussions also underscored how the program contributes to the key objectives of the National Industrial Strategy and the National Investment Strategy.

The Standard Incentives Program aligns with the Vision 2030 goals for the industrial sector by focusing on promising fields such as transformative chemicals, aviation, automotive, food, medical devices, pharmaceuticals, and machinery and equipment. These efforts underscore Saudi Arabia’s commitment to achieving integrated and sustainable economic diversification.