King Salman bin Abdulaziz Al Saud issued a royal decree approving the SAR 72 billion private sector stimulation initiative. Majed Al Qasabi, Commerce and Investment Minister, said the overall four year program, valued at SAR 200 billion, will cover 17 initiatives ranging from housing to exports and is aimed at economic growth.
According to a royal decree, the amount allocated will be divided into smaller projects, including; SAR 10 billion to support private sector projects, SAR 5 billion to boost exports and SAR 7 billion as reimbursements to small and medium-sized enterprises (SMEs) for government fees.
The initiatives include:
- Subsidized Housing Loans Initiative with a total amount of 2.1 million SAR
- High Efficient Air Conditioning Units Initiative with a total amount of 400 million SAR
- Projects Support Fund Initiative amounting 10 billion SAR
- Initiative on Supporting Financially Distressed Companies with a sum of 1.5 billion SAR
- Launching of Exports Promotion Program Initiative with an amount of 66 million SAR
- Exports Finance Enhancing Initiative with amount of 5 billion SAR
- Raising Kafalah Program capital with a total sum of 800 million SAR
- Indirect Loan for Small and Medium Enterprises Initiative with a total amount of 1.6 billion SAR
- The government Risk Capital Initiative for small and medium enterprises with a total amount of 2.8 billion SAR
- Government Fees Refunding Initiative for small and medium enterprises with an amount of 7 billion SAR
- Mega Investment Program Initiative with a sum of 5 billion SAR
- Broadband and Optical Fiber Stimulation Initiative with an amount of 2.56 million SAR
- Building Technologies Stimulation Initiative with a total amount of 13.87 billion SAR
- Priority Project Office Initiative with amount of 100 million SAR
- Private Sector Views Platform Initiative with amount of 20 million SAR
- Private Sector Workshops Initiatives with amount of 80 million SAR
The private sector stimulation initiative aims to increase the competitiveness in the market, improve the business and investment environment in the Kingdom and strengthen the economy’s outcomes by facilitating the implementation of Vision 2030.