The industrial sector in Saudi Arabia is experiencing significant growth, with small and medium-sized enterprises (SMEs) constituting over 90% of the industry. According to Badr Fouda, the Deputy Minister of Industry and Mineral Resources for Industrial Development, these SMEs are pivotal to numerous initiatives and incentives provided by the ministry.
Fouda emphasized that the ministry, under the guidance of Minister Bandar Al-Khorayef, aims to enhance the profitability of small factories and companies, starting with sales. The Local Content and Government Procurement Authority is also working closely to enable the industrial sector to benefit from government and state-owned company procurements.
Efforts are being made to reduce production costs, including exempting factories from labor-related fees. Additionally, a new initiative has been launched to attract investments and acquire industrial companies, providing opportunities for factories seeking partners or funding.
The “Promising Factories” program offers financial guarantees to emerging factories lacking financial viability, allowing them to secure loans from the Industrial Development Fund. This initiative supports SMEs in expanding and accessing funding, thereby fostering industrial development.
The ministry also focuses on creating opportunities for entrepreneurs through business incubator programs like “Alf Mile” and “Namaa.” These programs help entrepreneurs by studying investment opportunities, conducting feasibility studies, and funding industrial companies that meet the Industrial Development Fund’s criteria.
Digital services and automation are crucial for the sector’s development. The ministry provides incentives to support digitization across all industrial companies, enhancing the operational efficiency of SMEs. Efforts are underway to prepare small factories to adopt modern technology and benefit from digital transformation incentives.
To improve the investor experience, the ministry has compiled a comprehensive guide containing over 255 services and incentives available to the industrial sector. This guide helps entrepreneurs make informed investment decisions.
Fouda advised aspiring industrial entrepreneurs to join business incubators or accelerators to ensure their success in the sector. This involvement allows them to benefit from all the incentives and services provided by the ministry, along with support from other governmental bodies focused on industrial growth.
In conclusion, the Ministry of Industry and Mineral Resources is committed to supporting industrial companies in Saudi Arabia, recognizing that investment in this sector is fundamental to the Kingdom’s Vision 2030. The ministry continues to develop initiatives and services to achieve sustainable economic development goals.
