- 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.
Finance
The Kingdom of Saudi Arabia's (KSA) business-friendly environment includes a range of options for government and private project financing, which is readily available for eligible schemes.
Founded in 1974, the Saudi Industrial Development Fund (SIDF) is an important government financial tool for increasing KSA's attractiveness to investors.
SIDF provides low-cost, medium- to long-term loans for new industrial projects and expansions to existing schemes. These loans are valued by investors and often open the way to further commercial funding.
The SIDF loan programme:
- Can finance up to 50% of project costs (fixed assets, pre-operating expenses and start-up working capital), involving up to $53 million for companies and $160 million for joint-stock companies
- Allows repayment periods of up to 15 years
- Offers investors a two-year grace period between the start of industrial production and the first repayment
- Strengthens projects by offering advice on administration, marketing and technical matters
Since 1971 KSA's Public Investment Fund (PIF) has provided over
$20 billion of medium- and long-term loans and guarantees for
industrial and commercial projects. Administered by the Ministry of
Finance, PIF loans are for projects not covered by commercial
funding and can be for up to $1.3 billion.
KSA's commercial banks and specialist credit companies also offer project financing. Major commercial banks include Arab National Bank, Al Jazira Bank, National Commercial Bank, Riyadh Bank, SAMBA, Saudi British Bank and Saudi Investment Bank.
Foreign banks licensed to operate in KSA include BNP Paribas, JP Morgan, National Bank of Kuwait, National Bank of Bahrain, Emirates Bank, Gulf International Bank, State Bank of India, National Bank of Pakistan and Deutsche Bank.
For Saudi and foreign companies seeking wider access to capital, the Saudi Stock Exchange (Tadawul) is the largest stock market in the Arab world.
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