Saudi Arabia Announces Subsidized Projects Worth 192.4 Billion Rials for 8 Companies

Saudi Arabia hosted a ceremony to announce the first package of large corporate projects (Shrik) joining the Shrik private sector expansion program in the presence of Crown Prince Mohammed bin Salman.

A ceremony was held to announce the first batch of large corporate projects (Shariq) joining the Shariq private sector expansion program, which is specifically designed to support large Saudi companies (Shariq) to enable faster private sector growth. sector, thereby contributing to the achievement of the national aspirations set out in the Kingdom Vision 2030. Prince Mohammed bin Salman launched the program on 30 March 2021 and oversees its implementation through his chairmanship of the Large Companies Investment Committee (Shariq), while the number of companies included in the program is currently 28 private sector companies in the Kingdom, according to SPA.

The ceremony, which took place in the presence of a number of princes, ministers and high-ranking government officials, as well as the chairmen of the boards of directors and CEOs of a number of large Saudi private sector companies, Sharek and joining Sharek, signed a number of framework agreements and agreements on 12 projects to be implemented by eight companies in a range of strategic and vital sectors, these projects will help boost the Kingdom’s economic growth, localize industries, stimulate innovation and increase public-private partnerships.
SPA said the Shrik program helps eligible companies increase their investment, accelerate the pace of their projects and explore new investment opportunities through government support.

For his part, Abdul Aziz Al Arifi, CEO of the Shriq Program, said that Kingdom Vision 2030 has contributed to making the Kingdom a leading investment and growth destination through a methodology for expanding partnerships with the private sector, which is the foundation of development and access to sustainable economy.

He stressed that the Shrik program has become a top choice for large private sector companies as the program has enabled 12 private sector projects in four vital sectors, noting that the total value of the projects announced at the ceremony is around $192. billion rials, and represents the share of investments of large companies (Shrek), of which is about 120 billion rials, and its impact on the domestic product of the Kingdom is 466 billion rials over the next two decades, with an economic multiplier estimated at more than 2.43 times, which is of great strategic and economic importance for the Kingdom.
And he pointed out that these projects contribute to the growth of 8 national companies and contribute to their international competitiveness, as well as having a strong positive impact on the entire value chain, leading to greater investment opportunities for a wider segment of companies. in the private sector, since the complex economic effect of projects is one of the main criteria that the program takes into account when providing tools for implementation.

SPA stated that the first package of subsidized projects will have an economic and strategic impact on a number of economic sectors in the Kingdom, as well as create 64,451 thousand new jobs. The signing ceremony included:

– Approval of support for five projects of Saudi Aramco to accelerate the pace of their implementation, which will help create more than ten thousand jobs.
– A joint project to set up a steel sheet factory, which aims to make the Kingdom self-sufficient in terms of meeting the demand for sheet metal by 2030.

Cloud Computing Services Project, which will provide Google cloud services in the Kingdom and strengthen its position as a leading cloud computing center of excellence.

– Marine engine joint venture that will promote the development of the sustainable marine industry sector and achieve greater value in the metal and machinery sectors, which play a key role in diversifying industrial development efforts.
A joint metal casting and molding project in Ras Al Khair that will improve the integration of industrial supply chains in the Kingdom.

– The Amiral petrochemical complex project, which contributes to the localization of the production of new chemicals in order to strengthen the Kingdom’s world leadership in the petrochemical industry.

– ACWA Power will be supported to build the world’s largest green hydrogen plant as it is being developed in partnership with NEOM Green Hydrogen and Air Products Qudra as this project highlights the Kingdom’s huge potential as a leading clean energy country and supports its efforts to reduce carbon emissions.

– Saudi Arabian Mining Company (Maaden) will receive support from a program to accelerate the completion of its Phosphate 3 project in the Waad al-Shamal region, which is expected to strengthen the company’s position as the world’s third largest producer of phosphate fertilizers by 2029, as well as cementing the leadership of the Kingdom of Saudi Arabia in the global value chain of the agricultural sector, which helps maintain global food security.

SABIC received programmatic support for a catalyst manufacturing project to reduce dependence on imports and promote exports by establishing the first catalyst manufacturing center in the Kingdom.
And through the joint venture of the Advanced Petrochemical Company, Sharik supported the production of methionine, which will help strengthen food security in the Kingdom and improve the efficiency of food security.

With the support of the partnership program, the stc group intends to implement the submarine cable project as part of a strategic move that will strengthen the Kingdom’s position as a digital center and reliable destination for data transmission in the Middle East and North Africa region.

– The program supported the Saudi mobile communications company Zain Saudi Arabia in implementing a digital data center project to help transform the Kingdom’s economy into a leading digital economy by increasing its readiness and ability to keep pace with the latest developments in information technology in the future.

Saudi Bahri Company, a leading logistics services company, intends to increase its ammonia gas transportation capacity through a strategic project supported through Sharik, Local Content in Logistics.

Source: “SPA”