ENABLERS

A program to provide training support to private sector establishments to raise the skills of their employees. This meets the needs of the private sector through electronic training, in cooperation with government agencies and academics.

• Targeted Employees to be Saudi Nationality.
• Age not be less than 18 years and not more than 60 years old.
• To be registered in the national portal – TAQAT.
• Non-government employee – according to the data of the Ministry of Human Resources and Social Development.
• Should not have previously benefited from the Momaken program.
• The eligibility of an individual benefiting from the program is not affected by the Fund’s support in other programs.

Training is provided electronically and is carried out by training agencies and governmental bodies. It includes all activities, methods and training enablers within the Skills Program, which aims to provide the targeted group with the knowledge, skills and experience necessary. It supports them in performing their job tasks and offers greater stability in them.

You can visit the website of Human Resources Development Fund for more details:Human Resources Development Fund Website

An employment support program provided by the Human Resources Development Fund. The program aims to support research and jobseekers in the private sector. The fund bears a percentage of the employee’s wages, and includes support for all the jobs in the private sector for full-time. The program adds additional support in regions and cities with fewer job opportunities, less female employment. It provides support to persons with disabilities, and is for small, medium and micro enterprises.

All private sector entities are subject to the support provided through this program, unless they are suspended by the Ministry of Human Resources and Social Development of the Human Resources Development Fund. The minimum wage is 4,000 riyals. The maximum wage is 15,000 riyals, according to social insurance records. The duration of support period extends to two years.

You can visit the website of Human Resources Development Fund for more details:Human Resources Development Fund Website

The Tamheer program is an on-the-job training program for Saudi graduates from local and foreign universities and graduates of institutes and colleges who hold technical, health, and administrative diplomas. It aims to train them in government institutions and distinguished companies in the private sector so that they can acquire the expertise and skills necessary to prepare them to participate in the labor market.

• A Saudi Citizen
• Holding bachelor degree or higher, or holding of technical, health or administrative diploma.
• The social insurance records at the Ministry of Human Resources and Social Development should indicate that the applicant has not been registered for any job during the previous six months.
• Not currently employed.
• Applying for the program for the first time.

• A financial reward of (3000) riyals per month for the trainee for bachelor’s degree holders and above, and a financial reward of (2000) riyals per month for the trainee for holders of technical, health and administrative diplomas, provided by the Human Resources Development Fund.
• Insurance against occupational hazards.
• Electronic training courses.
• Experience certificate provided by the Human Resources Development Fund after completing the training program.

MODON oversees more than 36 industrial cities. Each industrial city has a field administration that supervises the daily needs of investors and supervises the operation and maintenance of the site and the construction projects in the industrial city. Moon has introduced different products that enhance its role and responsibility as one of the pillars of national industry empowerment and leadership.

MODON provides developed infrastructure and services such as electricity, water and others in different areas in all regions of the Kingdom that meet the needs of industrial investors.

MODON provides ready-built factories for investor partners who own small and medium enterprises. It has equipped production halls targeting clean and light industries.

You can visit the website of Saudi Authority for Industrial Cities and Technology Zones for more details:Saudi Authority For Industrial Cities And Technology Zones (MODON) Website

The E-MAZAD is a leading platform for conducting bidding operations and offering assets to be sold easily and safely for the industrial cities in the Saudi Authority for Industrial Cities and Technology Zones (MODON).

Visit The E-MAZAD Platform

The Royal Commission for Jubail and Yanbu supervises the operation of 4 industrial cities in each of Jubail, Yanbu, Jizan and Ras al-Khair. Meeting highest international standards to be the best option for investors in the petrochemical and energy-intensive industries. RCJY follows Comprehensive Management methods, leading the way for the Kingdom and the Arab region. The Royal Commission oversees nine sectors, namely; comprehensive planning, basic infrastructure, operation and maintenance, investment promotion, security and safety, health and community service, education, workforce training, and environmental protection.

You can visit the website of Royal Commission of Jubail and Yanbu for more details:Royal Commission Of Jubail And Yanbu Website

ECZA enhances the Kingdom’s global competitiveness by launching and enabling a range of cities and special economic zones that provide an attractive regulatory environment for investment. ECZA supports targeted competitive incentives and enablers, highly efficient integrated government services, and a stimulating living environment with global quality of life standards. The lunch took place in four special economic zones, including:

Sectors of Opportunity:

• Automobile supply chain and assembly.
• Consumer goods.
• ICT (Electronic light manufacturing).
• Pharmaceuticals.
• MedTech.
• Logistics.

Sectors of Opportunity:

• Shipbuilding and MRO.
• Rig platforms and MRO.

• Food processing.
• Metals conversion.
• Logistic.

Sectors of Opportunity:

• Cloud computing.

• Corporate income tax reductions.
• A variety of withholding tax exemptions.
• Deferred customs duties on goods entering the SEZ.
• Expat levy ensuring fees exemption for employees and their families in the zone.
• VAT exemptions based on sector/activity criteria.
• Flexible and supportive regulations around foreign talent.

In line with supporting promising small and medium-sized industrial enterprises, the SME Scale-Up product was launched to provide financial facilities to SMEs with proven success records. This allows them to increase their production capacity and reach the growth and expansion that resonates with their aspirations. This offering is available for both new and existing SIDF investors.

• Brownfield projects with three years of audited financials.
• Increase in revenue or volume sold.
• Terms and conditions apply.

• Longer tenure of 8 years.
• Longer grace period of up to 24 months.
• Possibility to reduce net worth requirement to 50% of the loan amount.
• Upfront disbursement of 30% of the loan amount.

Tawteen program is set to facilitate, enhance, and finance supply chain localization opportunities of the Kingdom’s industrial sector. To achieve this, SIDF established partnerships with leading companies in the Kingdom of Saudi Arabia to enable the switch to source locally manufactured products and spare parts. Through preferential financing solutions, the Tawteen program will help stimulate investment activities and support the national and local content strategy.

• Stimulate domestic and foreign investments to increase local content.
• Highlight localization opportunities.
• Measure and maximize SIDF Local Content contribution.

• Longer tenure of a minimum of 7 years.
• Longer grace period of up to 24 months.
• Fast track for projects with purchase agreements.

In collaboration with Commercial Banks, SIDF has introduced the Letter of Credit as a default payment mechanism to Clients with preferred terms and conditions.

• Better liquidity management.
• Project implementation acceleration.
• Lower Issuance fees.

The Client: Contractual agreement between client and supplier.

SIDF: Provide a guarantee to issue the Letter of Credit with terms and conditions.

The Bank: Issues Letter of Credit and validates shipping documents.

• Riyad Bank
• The Saudi National Bank
• Alinma bank
• Arab National Bank
• Gulf International Bank
• Bank Albilad​
• Al Rajhi Bank

Financing the incremental working capital needs (account receivables, inventory and account payables) to aid the growth of projects by extending short-term loans with a maximum financing tenure of one year.

• Simplified and quick evaluation process.
• No additional security required.
• Upfront disbursement.

• To be an Existing Client of SIDF.
• Operational for at least 18 months.
• Proven need of working capital.
• Satisfactory relationship with SIDF.
• Existing loan to be fully disbursed.

The Saudi Industrial Development Fund has launched phase one of the Acquisition Finance Product, which aims to fund acquisitions for local companies to acquire local targets in SIDF financed sectors with a clear added value to Saudi Arabia.

• Financing the acquisition of a specific technology, a method of manufacture, or intellectual property.
• Financing the acquisition of a supplier or clients to achieve integration in cost or revenues.
• Financing the acquisition of a competitor for the integration and development of offers.

• Pre-acquisition financing
• Post-acquisition financing

SIDF finances capital expenditures aimed at improving the operational value of the project, including production lines, services, buildings, IT systems, safety equipment upgrades, vehicles, and warehouses.

• Assure a non-increase of the production capacity of the project.
• Produce a clear positive impact on improving the operational value of the project.
• The company should be financially solvent enough to repay the SIDF loan and with a track record of profits in the last two years.

• Medium-term financing for a maximum period of 5 years.
• 30% upfront disbursement of the loan.
• Fast assessment track.

SIDF offers this service to projects, through a set of different requirements, procedures, and stages, ranging from short to long term loans for various purposes.

• New Industrial Projects.
• Expansion Projects for Existing Facilities.
• Upgrade Projects for Existing Facilities.

• Financing for a period up to 20 years.
• Financing up to 75% of the project total cost.
• Grace period up to 18 months.

1. 1- Balance of payments.
2. 2- Pharmaceuticals & medical devices.
3. 3- Machinery & equipment.
4. 4- Food processing.
5. 5- Transportation & logistic services.

• Enhancing ease of business indicators.
• Increasing local content.
• Support localization of manufacturing.
• Marketing support.
• Incentives & benefits.
• Flexible repayment periods.
• Special prices.

The “mandatory list” is a list of national products that the contractor must commit to purchase from national manufacturers in conjunction with a government agency. The list aims to develop national industries and products that have the ability to meet the needs of government projects.

• The competitor is obligated to present product origin, whether it is national or foreign.
• The offer where the competitor did not comply with the mandatory list shall be excluded, and in the event that the competition is divisible, then the items in which the competitor did not abide by the mandatory list shall be excluded in the supply contracts.

• The competitor does not have to present the original product, whether it is national or foreign.
• The contractor must abide by the list when executing the contract, and the government entity takes into account this list when supervising the implementation.

You can visit the website of Local Content & Government Procurement Authority for more details:Local Content 

This mechanism aims to give a price preference to national products. This is directly applied by the government agency in the supply contracts, and the contractor is obligated to apply it in his contracts with his subcontractors. At the end of the contract, the contractor submits a report confirming his commitment to the share of national products during the contract period. Fines are also imposed on the contractor in the event of default in the share of national products.

• The national product is granted a price premium, by assuming the price of the foreign product 10% higher than indicated in the bid.
• The premium rate may be increased through an agreement between LCGPA and the Center of Spending Efficiency, provided that the modified rate is explicitly stated in the tender documents.
• This mechanism applies to products not included in the mandatory list.
• This mechanism applies either directly or indirectly.
• Direct application: through the government agency in the supply contracts where national products are preferred. Also during the evaluation phase of offers according to the price preference equation.
• Indirect application: through the contractor with the government agency in all contracts other than supply. Giving preference to national products when purchasing materials or tools. Also, the contractor is obligated to apply the price preference mechanism in his contracts with his subcontractors.

You can visit the website of Local Content & Government Procurement Authority for more details:Local Content & Government Procurement Authority Website

This mechanism aims to define a minimum required for local content at the project level. It applies to some projects, determined by the Local Content and Governmental Procurement Authority and the Spending Efficiency Center. It is applied to high-value contracts. Competitors provide a percentage of local content, no less than the minimum required, and must clarify whether or not the company is listed in their submitted offers. This is included in the financial evaluation according to an equation that determines the winner of the competition.

In the financial evaluation, this mechanism grants a price weight equivalent to 60%. The remaining 40% includes:

• Baseline for local content.
• Target local content percentage.
• Being listed in the market.

You can visit the website of Local Content & Government Procurement Authority for more details:Local Content & Government Procurement Authority Website

This mechanism allocates weight to the local content and to companies listed on the financial market during the financial evaluation phase. An accounting formula determines the highest-ranking competitor.

In the financial evaluation, this mechanism grants a price weight equivalent to 60%. The remaining 40% includes:

• Baseline for local content.
• Target local content percentage.
• Being listed in the market.

You can visit the website of Local Content & Government Procurement Authority for more details:Local Content & Government Procurement Authority Website

Industry localization and knowledge transfer agreements are agreements directed to investors who own leading technologies around the world to motivate them to transfer technology and knowledge to the Kingdom in exchange for a government purchase guarantee, the percentage and duration of which are agreed upon according to a feasibility study that considers the investment returns on the government commitment as well as on the investor.

• Developing local content through the impact of the establishment of factories by major international companies within the Kingdom as well as creating jobs, transferring knowledge, and creating new local supply chains.
• Attracting foreign investments.
• Reducing dependence on imported products and creating new opportunities to export local products.

You can visit the website of Local Content & Government Procurement Authority for more details:Local Content & Government Procurement Authority Website

Customs duty exemption on authorized imports for industrial establishments, such as machinery, equipment, and spare parts imported for industrial use.

An exemption is applied to products that are not available through local manufacturers/suppliers, or in case the local supply does not meet the required specifications.

You can visit the website of Ministry of Industry & Minerals Resources for more details:Ministry Of Industry & Minerals Resources Website

Military factories licensed by the General Authority for Military Industries are exempted from value-added tax.

• The entity must have a license from GAMI.
• The produced products are classified as a good for military applications
• The product(s) are being supplied to all sections of the Armed Forces and the Internal Security Forces in the Kingdom.
• Meeting all requirements and regulations of Zakat, Tax and Customs Authority.