Saudi launches $19bn second phase of private sector incentive plan

Saudi Arabia has launched the second phase of a private sector incentive plan with 17 initiatives totalling SAR72bn ($19.18bn).

The announcement comes as growth in the private sector remains relatively sluggish linked to higher fees, new taxes and Saudisation plans that have forced firms in some sectors to cut foreign workers.

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The first SAR40bn ($10.66bn) phase of the SAR112bn ($29.84bn) stimulus plan included new financing provided to businesses by the Industrial Development Fund, a series of housing programmes and an exemption from fees for some companies.

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The head of the kingdom’s local content and private sector development unit, Nama, said the second phase of initiatives were intended to provide short and medium-term stimulus and would be announced “soon”.

The programme is expected to “enhance the confidence of the private sector, improve the working environment and facilitate business in the kingdom”, according to a statement to Saudi Press Agency.