- Foreword
An introduction to the Industrial Clusters program from president, Azzam Shalabi.
ObjectivesSpecific goals of the Industrial Clusters program.
OrganisationHow the program and individual clusters are structured.
ExpertiseSpecific areas of expertise and key people within the program.
PartnersOrganisations that work closely with and support Industrial Clusters.
- Strategic advantages
More about the many advantages KSA offers industrial investors.
InfrastructureAn overview of KSA’s modern and expanding industrial and business infrastructure.
Human capitalEducation, training and demographics of KSA’s world-class labour pool.
Investment incentives and supportA guide to the incentives and support available to industrial investors.
- Labour regulations
More about working practices and regulations in Saudi Arabia.
Trade agreementsSaudi Arabia is an active member in many trade organisations worldwide.
TaxationLearn about Saudi Arabia's highly favourable taxation and duty levies.
Setting up a businessHow Industrial Clusters can advise on establishing a business in KSA.
SAGIAThe Saudi Arabian General Investment Authority can facilitate investment and support.
- Minerals and Metal Processing cluster
The opportunities for metals and minerals industries and downstream applications.
Automotive clusterWhy KSA is well-placed to meet growing demand for vehicles and vehicle components.
Plastics and Packaging clusterHow plastics conversion builds upon the success of KSA’s petrochemicals industry.
Home Appliances clusterKSA’s resources can meet soaring demand for home appliances in the Middle East.
Solar Energy clusterMore about the potential for creating the components for and generating solar energy.
Other industriesBeyond the Industrial Clusters, KSA has a raft of long-established and successful industries.
Industrial Clusters program supportMore about the support Industrial Clusters can offer to industrial investors.
Investment incentives and support
The Kingdom of Saudi Arabia (KSA) is a fast-growing, business-friendly, pro-trade and highly popular location for foreign investors. In 2009 it attracted $35.5 billion of foreign investment, producing a total stock of $147.1 billion.
Foreign companies enjoy all the benefits, incentives, guarantees and support offered to Saudi-owned companies. These include:
- No personal income tax, no value-added tax, no sales tax, no land tax and no property tax
- 100% foreign ownership permitted - of companies, plant, equipment, projects and property
- Full repatriation of capital, profit and dividends allowed, subject to a 5% withholding tax
- Low-cost sites in KSA's 24 industrial cities and four economic cities, and in Jubail and Yanbu
- No export duties within the 17 countries of the Greater Arab Free Trade Area
- Few restrictions on currency conversion, exchanges and transfers
- 20% tax on corporate profits, with any losses carried forward indefinitely to offset future taxes
- No restrictions on sponsoring foreign employees
- Customs duties exemption on imported machinery, equipment, raw materials and spare parts if they are for industrial use
- Duty drawback, a customs refund for raw material imports that are processed and exported as finished goods
- Preferential treatment for national products in Saudi government procurement
Foreign companies can benefit from specific schemes to help them export, recruit employees and grow. These include:
- Export credit, financing, guarantees and insurance through the Saudi Export Program
- The promotion of Saudi non-oil exports by the Saudi Export Development Authority
- Financial support for the training and employment of Saudis from the Human Resources Development Fund
- Low-cost loans from the Saudi Industrial Development Fund and Public Investment Fund
The Government also grants significant training- and employment-related tax concessions to companies operating in six less-developed regions: Hail, Jazan, Najran, Al-Baha, Al-Jouf and Northern Borders. These tax privileges are valid for 10 years from the start of a project.
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