THE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Prominent Benefits and Exemptions Offered to Industrial Projects: Unleashing Investment Opportunities
The economy is undergoing a qualitative transformation towards diversification and reliance on non-oil sectors, with the industrial sector being a key pillar in this transformation due to its significant role in driving development and creating employment opportunities. Therefore, the Kingdom has developed an ambitious strategy for industrial development, which encourages investment by providing a comprehensive package of exemptions and benefits to investors.
Here, we will highlight the prominent exemptions and benefits offered to industrial projects, and their role in stimulating investment and supporting the national industry. The key exemptions provided to industrial projects in the Kingdom include:
- Possibility of total or partial exemption from customs duties on project imports, subject to the agreed industry regulations in the Unified Industrial Regulation System of the Gulf Cooperation Council (GCC) countries.
- Possibility of full or partial exemption from various taxes, including income tax, in accordance with the Income Tax Law.
- Exemption of industrial project exports from export fees and taxes.
In addition to exemptions, there are also notable advantages granted to industrial projects in the Kingdom, including:
- Provision of allocated land for the establishment of the industrial project.
- Ease of leasing industrial buildings, offering leasing incentives, and providing necessary facilities at reduced and incentivized rates.
- Possibility of receiving technical and economic studies and research from the Ministry of Industry and Mineral Resources, conducted by the industrial project owner, if the project is of economic significance to the national economy.
- Provision of incentives and services to industrial investors.
These exemptions and incentives aim to attract local and foreign investment, transfer and localize technology in the Kingdom and drive economic and industrial development.
Finally, the exemptions and incentives provided by the Kingdom to investors in the industrial sector constitute a major attraction for capital, whether domestic or foreign. The success of this policy depends on the effectiveness of its implementation and its ability to keep pace with rapid economic changes.