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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)
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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.

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Business

FII Summit in Miami: Al-Jadaan Says Saudi Economy Resilient, Able to Manage Crises

Future Investment Initiative summit opens in Miami (Asharq Al-Awsat)
Future Investment Initiative summit opens in Miami (Asharq Al-Awsat)
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FII Summit in Miami: Al-Jadaan Says Saudi Economy Resilient, Able to Manage Crises

Future Investment Initiative summit opens in Miami (Asharq Al-Awsat)
Future Investment Initiative summit opens in Miami (Asharq Al-Awsat)

Saudi Arabia’s Vision 2030 took center stage as the Future Investment Initiative (FII) summit opened in Miami, with the kingdom delivering a balanced message that combined strategic caution with investment confidence.

Saudi Finance Minister Mohammed Al-Jadaan warned of geopolitical disruptions that could surpass the economic impact of the COVID-19 pandemic, while stressing the resilience of the Saudi economy and its ability to manage crises.

Meanwhile, Public Investment Fund (PIF) Governor Yasir Al-Rumayyan outlined a new phase of growth driven by an upcoming five-year strategy, saying the kingdom has evolved from building internally to a global platform that invites capital to seize unprecedented opportunities.

Against a backdrop of accelerating global economic and geopolitical shifts, the fourth edition of the FII PRIORITY summit kicked off in Miami on Thursday under the theme “Capital in Motion.”

The event, which runs through Friday and will conclude with remarks by US President Donald Trump, brings together more than 1,500 participants, including business leaders, policymakers, and investors from the United States, Latin America, the Middle East, Europe, Asia, and Africa.

It aims to reshape global capital flows and promote inclusive, sustainable growth.

The summit comes at a time when the world is undergoing what the FII Institute described as a “redistribution, repricing, and reimagining of capital,” adding that understanding and responsibly shaping these shifts is a shared global priority.

Al-Jadaan warns of escalating risks

Speaking during a panel discussion, Al-Jadaan said current geopolitical tensions could trigger global economic consequences more severe than those seen during COVID-19, calling for swift international action to contain the fallout.

“What we saw in the last few weeks is an impact beyond what we have seen even post-COVID, in terms of supply chain disruption, and if this continues, I think we will see even more severe impact,” Al-Jadaan said.

“We really need to make sure we resolve the conflict very quickly and come together to do that for the global economy not to be impacted even more.”

“You will need to mute a lot of the media noise for you to really understand what’s happening on the ground,” al-Jadaan said.

Al-Jadaan added that while oil has dominated media coverage, it is refined products – including fertilizers, steel, and aluminum – that have been most affected.

Long-term investment safeguards energy security

Al-Jadaan highlighted Saudi Arabia’s proactive approach to crisis management and energy security, pointing to the East-West pipeline as a key example.

He said the kingdom invested heavily in the pipeline over 50 years without immediate returns, but it now serves as a vital strategic alternative and secure route for oil supplies.

The pipeline is currently being used efficiently to manage global oil flows and mitigate the impact of the energy crisis, reinforcing Saudi Arabia’s role as a stabilizing force in international energy markets.

He added that the Saudi economy has demonstrated strong crisis management capabilities, supported by solid fiscal buffers and structural flexibility under Vision 2030, positioning it as a model of certainty in a volatile global environment.

A model of certainty and resilience

Al-Jadaan said investors are currently focused on three key factors: certainty, resilience, and growth prospects. He noted that Saudi Arabia offers a distinctive model, backed by financial stability and a proven ability to navigate crises.

Economic resilience, he added, has become a strategic approach embedded in Saudi policy, supported by investment in human capital and advanced technologies, enabling the kingdom to maintain positive growth despite global volatility.

Gulf transformation into an integrated economic force

At the regional level, Al-Jadaan praised the growing coordination and economic resilience among GCC countries, saying they have demonstrated strong adaptability as a unified economic bloc.

“They (GCC states) are a lot more resilient working together,” al-Jadaan said.

The transformation into a unified economic bloc has enhanced investment opportunities across sectors such as logistics, defense, real estate, and technology, making the region more attractive and transparent to investors.

He stressed that global economic stability depends on regional stability and secure supply chains for essential industries, urging international cooperation and noting that economies investing in people and technology will be best positioned for sustainable growth.

Al-Rumayyan: Saudi economy remains robust

Al-Rumayyan said Saudi Arabia’s economy remains “strong, stable and resilient,” as PIF prepares to unveil a new five-year strategy within weeks.

He outlined a strategic shift in the sovereign wealth fund’s approach, moving from predominantly self-funded investments toward a broader model that invites both domestic and international partners.

He emphasized that PIF operates as a long-term investor, measuring returns “not in quarters, but in decades,” while maintaining a diversified and structurally resilient portfolio.

Since its establishment, PIF has undergone several phases, initially focusing on building the national economy and, since 2015, accelerating sector development.

The next phase will involve greater participation from local and international investors, moving beyond a reliance on direct investments.

The governor said the upcoming strategy, expected to be revealed within weeks, will focus on mobilizing third-party capital and creating more opportunities for global investors to participate in Saudi-led projects.

“We put the foundation for many of these investments initially,” the PIF governor said. “Now we are looking in a greater way at how to invite people to come and work with us.”

He noted that major global asset managers, including BlackRock and Franklin Templeton, have already begun establishing funds in partnership with PIF to invest in the Saudi economy.

Al-Rumayyan highlighted the evolution of PIF from its early role as a “nation builder” to its current position as a global investor and ecosystem developer, with a recent increased focus on domestic deployment.

He said the fund is now entering a new phase aimed at “crowding in” private sector participation across key sectors, including infrastructure, real estate, data centers, pharmaceuticals, and renewable energy.

The shift reflects a broader ambition to transform Saudi Arabia into a global investment hub.

“In the past, we tried to bring Saudi to the world,” he said. “Now we are in a stage where we want to bring the world to Saudi.”

Al-Rumayyan pointed to large-scale developments such as Red Sea Global as examples of this approach, noting that the project has already attracted 19 international hotel operators and is expanding partnership models in infrastructure and risk-sharing mechanisms.

He added that “de-risking” projects for investors remains a central pillar of PIF’s strategy, enabling greater participation from private capital.

On artificial intelligence, Al-Rumayyan said Saudi Arabia is “very well positioned” to benefit from the technology, citing strong access to computing infrastructure, energy resources, and a supportive regulatory environment.

He stressed that AI should be viewed as an enabler rather than a standalone product, with its value driven by efficiency gains across industries.

“We see AI as a tool,” he said. “The end product is what our companies deliver, cutting costs and improving efficiency.”

He highlighted partnerships with major US technology firms, including Microsoft, Google, and Oracle, as well as tangible results from companies such as Saudi Aramco, which he said reduced drilling costs by about 20% and improved delivery efficiency by 30% through AI adoption.

Al-Rumayyan also underscored the FII's role as a global platform for building partnerships, stressing that networking and collaboration are key outcomes beyond formal discussions.

“It’s not only the dialogue,” he said. “It’s the relationships and the knowledge that people take away.”

Attias: platform to shape global investment flows

FII Chairman and acting CEO Richard Attias affirmed that the Miami summit serves as a global platform to understand shifts in the international economy amid rapid cross-border flows of capital and technology.

Speaking to reporters, Attias said the summit opened with a session on “the New LATAM Order,” reflecting growing interest in the region. He described Miami as a strategic meeting point between North and South America and a hub for redirecting investments.

Sessions featured business leaders and political officials, as well as closed-door meetings among investors.

Summit agenda

The summit’s agenda covers global investment and economic relations, including discussions on US-Gulf investment partnerships under pressure and the evolving structure of agreements between the United States and Latin America.

It also focuses on technology transitions, particularly artificial intelligence and the digital economy.

Energy and resources are also on the agenda, with sessions on how energy deals will reshape power and profitability, and the race for critical minerals. Other discussions address aviation and tourism, including whether accounting defines competitiveness in the aviation sector and where smart investments in travel infrastructure are headed.

Broader topics include global economic outlooks, the flow of power and capital, and how to address a $3 trillion exit backlog, as well as closed sessions for decision-makers to set investment priorities.

Business

Saudi Arabia Bypasses ‘Hormuz’ Disruption with Transcontinental Network

Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
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Saudi Arabia Bypasses ‘Hormuz’ Disruption with Transcontinental Network

Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)
Vehicles complete crossing procedures on King Fahd Causeway linking Saudi Arabia and Bahrain (SPA)

As global supply chains face unprecedented strain, and the Strait of Hormuz, one of the world’s most critical chokepoints, is disrupted, Saudi Arabia has positioned its transport system as a vital alternative, helping keep global trade moving.

Under the National Transport and Logistics Strategy launched by Crown Prince Mohammed bin Salman in 2021, the kingdom has built a transcontinental network that is now being tested in real time.

Officials say operational success rates exceed 97% in crisis management and evacuation.

The system, designed to position Saudi Arabia as a hub linking three continents, has been activated through new logistics zones, partnerships with global firms, and faster export and import procedures across air, land, and sea.

This has helped ensure the steady flow of goods, services, and energy, shifting the kingdom’s role from infrastructure developer to a key stabilizing force in times of crisis.

Air response

Logistics expert Hassan Al Helil told Asharq Al-Awsat that air transport now drives emergency response, handling 70% to 80% of rapid evacuations.

Sea transport is used for larger operations involving 500 to 2,000 people, with response times of 24 to 72 hours.

He said operations rely on tight coordination and strict safety protocols, including medical screening and in-transit care, despite challenges such as congested airspace, longer flight times of 20% to 30%, regulatory differences, delays of up to 48 hours, and weak infrastructure in crisis areas that can cut efficiency to 40%.

Even so, Saudi Arabia maintains a success rate above 97%, supported by flexible operations and tested emergency plans.

Red Sea shift

Maritime transport has emerged as a key alternative. Red Sea ports, led by Yanbu, are handling cargo that once passed through the Strait of Hormuz.

Integrated with the East-West pipeline, the system allows exports to be rerouted away from tension zones without disrupting supply.

Crude exports from Yanbu’s northern and southern terminals averaged 4.4 million barrels per day over five days through Tuesday. The kingdom is aiming to raise Red Sea exports to 5 million barrels per day.

Transport costs have dropped 58% as vessels move closer to Saudi ports. Large cargoes, including wind turbines, have been redirected from Jubail to Yanbu to speed delivery.

Smarter routes

Al Helil said diversifying export routes has cut exposure to chokepoints by up to 40%.

This helped absorb global shipping cost increases of up to 50%, alongside added geopolitical risk fees and higher insurance costs.

Despite global delays of three to 10 days, Saudi port efficiency and temporary exemptions for vessels reduced idle time by 25% and limited price volatility.

Land and rail

Saudi Arabia has also become a key land corridor for Gulf trade, backed by more than 500,000 trucks and expanded rail capacity exceeding 2,500 containers a day.

Thousands of trucks have moved goods to Kuwait and Bahrain, underscoring the kingdom’s growing role as a regional distribution hub.

The system has also supported passenger movement, including overland transport of Kuwaiti citizens from Riyadh and Iraqi flights arriving at Arar airport.

Regional links

The Saudi Ports Authority has launched a new trade bridge linking Dammam with Sharjah in partnership with Gulftainer, offering faster multimodal shipping.

A Gulf Shuttle service now connects Dammam’s King Abdulaziz Port with Bahrain’s Khalifa Bin Salman Port.

Saudi Arabia Railways has also launched a freight corridor linking eastern ports with the Al Haditha border crossing, strengthening trade links with Jordan and beyond.

Passengers and crisis response

The system has played a key humanitarian role, facilitating the movement of stranded travelers.

Arar International Airport has received flights from Iraq, while maintaining operational success above 97%.

Authorities have also introduced temporary exemptions for ships, cutting idle time by up to 25% and reducing costs without compromising safety.

This has lowered maritime transport costs by 8% to 18% and reduced price volatility by 10% to 20%.

Food security, shuttle shipping

The system has also supported regional food security.

Land crossings, particularly Abu Samra, have ensured steady supplies to Qatar.

Al Helil said Saudi Arabia has diversified imports from more than 25 countries and maintains strategic reserves of up to 12 months for some goods, with availability exceeding 95%.

Also speaking to Asharq Al-Awsat, logistics specialist Nashmi Al Harbi said rail has become a reliable alternative amid disruptions at sea.

A new freight route linking eastern ports to Al Haditha can carry more than 400 containers per train, cutting shipping time in half.

In February 2026, the Saudi cabinet approved a high-speed rail link between Riyadh and Doha, reducing travel time to two hours and supporting steady goods flows.

Al Harbi said that shuttle shipping, using smaller vessels that move frequently between ports, is reshaping supply chains and costs.

He said a parallel maritime link has eased pressure on the King Fahd Causeway, which handled 4.7 million vehicles in 2025, while supporting intra-Gulf trade nearing $1 billion.

Saudi Arabia is also attracting global logistics firms. DHL is investing 130 million euros to build a regional hub in Riyadh, while Maersk has opened a new bonded warehouse.

These efforts have lifted the kingdom 17 places in the World Bank’s Logistics Performance Index to 38th globally.

Saudi Arabia has moved beyond crisis response to strengthen its position in global trade. With integrated ports, stronger infrastructure and flexible operations, it can reroute trade and energy flows efficiently, turning disruption into opportunity.

Business

Sources: Spain, Algeria in Talks to Increase Pipeline Gas Supply by Up to 10%

Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA
Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA
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Sources: Spain, Algeria in Talks to Increase Pipeline Gas Supply by Up to 10%

Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA
Spanish Foreing Affairs Minister Jose Manuel Albares speaks during a press conference after the Cabinet meeting at Moncloa Palace in Madrid, Spain, 24 March 2026. EPA/CHEMA MOYA

Spain and Algeria are in talks to increase the supply of natural gas via the Medgaz pipeline from Algeria by as much ⁠as 10%, two ⁠sources familiar with the matter said.

Talks are in advanced stage, one of the ⁠sources said, adding that a preliminary agreement may be reached during Spanish Foreign Minister Jose Manuel Albares's visit to Algiers this week.

The increase would be possible as the ⁠pipeline ⁠between the countries has capacity to increase the flow of gas by around 1 billion cubic meters (bcm) per year, Reuters quoted them as saying.

Spain and Algeria agreed to strengthen their energy partnership, Albares said on Thursday after meeting Algerian President Abdelmadjid Tebboune.

Algeria is "a stable and reliable" supplier of gas, Albares said.

The Iran conflict has upended energy markets and increased volatility, leading some to look elsewhere ⁠for their gas. Spanish power ⁠utility Naturgy's CEO Francisco Reynes said this week the company wanted to strengthen its relationship with its Algerian supplier and shareholder Sonatrach.

Naturgy has gas contracts with the Algerian state oil and gas company for ⁠about 5 billion cubic meters per year, according to figures the Spanish company gave to the market in 2022.

Algerian gas made up more than 29% of Spain's total gas imports in the first two months of the year, according to data from Spanish gas grid operator Enagas.

It comes via the Medgaz pipeline, in which Naturgy is ⁠a minority ⁠partner and Sonatrach holds a 51% stake. Sonatrach also has a stake of about 4% in Naturgy.

Other countries are also asking Algeria for more gas in the face of disruption caused by the conflict in the Middle East.

Italian Prime Minister Giorgia Meloni said she hoped Algeria would send more gas to her country during a visit to Algiers this week.