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RIYADH: ��������Ƶ has rolled out 15 new incentives under the Authorized Economic Operator program, to boost export competitiveness, enhance supply chain security, and advance the Kingdom’s ambitions as a global logistics hub.

The Ministry of Industry and Mineral Resources announced the incentives, which include key administrative benefits such as assigning liaison officers and account managers to streamline processes for investors and address challenges more efficiently.

As part of the program, companies will also gain access to industrial land, with long-term leases of up to 30 years, and eligibility for the “Custom Factory on Demand” service. These measures are designed to support industrial expansion and strengthen the Kingdom's position in global trade.

This announcement follows the ministry’s earlier declaration of an allocation of SR10 billion ($2.66 billion) to activate the Standard Incentives Program for the industrial sector. This funding, approved by the Saudi Cabinet in December last year, is intended to foster industrial investment, stimulate growth, and contribute to the sustainable development of Saudi industry.

The new incentives will also streamline procedures for investors, including expedited processing and priority access to pre-developed industrial lands and factories. Additionally, companies will be given preferential eligibility for incentives provided by the Saudi Export Development Authority.

Further financial support is available through the Saudi Industrial Development Fund, which can cover up to 75 percent of project costs. SIDF offers extended financing with repayment terms of up to 20 years and grace periods of up to 36 months. Eligible companies can also access advisory services and training programs from SIDF’s industrial academy.

The AEO program is a cornerstone of ��������Ƶ’s broader strategy to enhance customs and logistics services, simplify trade processes, and improve the efficiency of supply chains.

The initiative not only aims to bolster the position of Saudi companies as global leaders but also seeks to attract both local and foreign investments, especially benefiting small and medium-sized enterprises.

Launched by the Zakat, Tax, and Customs Authority, the Saudi AEO program aligns with global trade frameworks used by over 80 countries. It offers businesses that adhere to secure trade standards smoother operations in the international customs environment.

On Jan. 11, ZATCA expanded the program into a national initiative, integrating 15 government entities into the effort.

RIYADH: ��������Ƶ’s Public Investment Fund has acquired a 23.08 percent stake in Saudi Reinsurance Co. through a capital increase and subscription to new shares. 

The deal, originally signed in July 2024, raises Saudi Re’s capital from SR891 million ($237 million) to SR1.15 billion, a move aimed at enhancing the insurer’s financial stability and credit ratings. 

The investment, which received regulatory approval and shareholder consent, is expected to strengthen Saudi Re’s position as the national reinsurer significantly, according to a press release. 

The move aligns with the Kingdom’s broader commitment to bolstering its insurance sector in line with the goals of Vision 2030. 

By retaining more premiums domestically, Saudi Re will contribute to the growth of the Saudi reinsurance market and improve risk management for local insurers. 

Sultan Alsheikh, head of financial institutions at PIF, said: “By investing in Saudi Re, PIF is reinforcing a leading regional reinsurer and strengthening ��������Ƶ’s insurance sector, which is an essential component of sustainable economic growth.” 

He added: “This enhances access to quality financial services for insurers and their policyholders, and strengthens the sector.” 

Arab News previously reported that Saudi Re’s capital increase would be funded by the issuance of 26.73 million new shares, valued at SR10 each, according to a bourse filing at the time. Representing 30 percent of the company’s capital, the shares were to be fully subscribed by PIF at SR16 per share, totalling SR427.68 million. 

“We are delighted to welcome PIF as a strategic investor and look forward to its role in enabling Saudi Re’s strategy and reinforcing its position as a national reinsurer, while further strengthening its presence regionally and globally,” said Ahmed Al-Jabr, CEO of Saudi Re. 

“This investment will provide us with multiple benefits, including boosting our financial position and unlocking opportunities for expansion and growth,” he added. 

Saudi Re, listed in the Saudi Market Exchange, operates in over 40 countries across the Middle East, Asia, Africa and Lloyd’s market in the UK. It holds high credit ratings, including an A-minus from S&P Global and an A3 from Moody’s. 

In the first nine months of 2024, the company recorded total written premiums of SR1.94 billion ($520 million), with a compound annual growth rate of 17 percent over the past five years. 

The investment aligns with PIF’s broader strategy under Vision 2030 to foster economic diversification and create partnerships that promote local content. 

The fund’s strategy, as set out in the PIF Program 2021-2025 — one of the Vision 2030 realization programs — aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector. 

By scaling up Saudi Re’s capacity to meet the rising demand for reinsurance solutions, PIF is contributing to the development of a robust and innovative insurance ecosystem in ��������Ƶ.