An investment of 20 billion riyals is a condition to benefit from the support of a “partner”

The controls that major companies benefit from financial and operational support in the “partner” program included a minimum investment of 20 billion riyals over the next decade, and the ability to invest 400 million riyals in each project. The Public Investment Fund constitutes a leading party from the newly created Secretariat to help manage the program, and the Governor of the Fund, Yasser Al-Rumayyan, holds the position of Chairman of the Executive Committee for Large Corporate Investments, and any direct financial support is provided to major companies within the program as needed, and based on what is being negotiated. It is required between the concerned parties, so that loans and grants are available, but it is possible that the effect of these incentives on reducing the cost of investment projects executed by large companies will differ according to the nature of each project.

The “partner” program is a cooperative governmental framework led by Prince Muhammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic and Development Affairs, and aims to inject the private sector into investments worth 5 trillion riyals until 2030. The program was designed to provide support Across a number of pillars, they include financial, monetary, operational, and regulatory cooperation and asset investment.

The program is currently available only to large private companies with projects that will have a significant impact on the national economy in general, and the program was named so because of the enhancement of the spirit of partnership between the public and private sectors, as the philosophy guiding the new program, which was established to achieve huge benefits for large private companies. The Major Companies Investments Program “Shrek”, which is headquartered in Riyadh under the management of the program’s General Secretariat, aims to enhance the development and resilience of the Saudi economy by increasing the gross domestic product and diversifying the economy. The program was established to accelerate the growth of business opportunities within the Kingdom and support the achievement of Vision 2030. It is not a direct response to the negative economic impacts of the Covid-19 pandemic.

The Kingdom’s government manages the large companies program under the direction of the Crown Prince, while the Large Companies Investment Board supervises the implementation of the program, and the members of the Council include the Ministers of Investment, Tourism, Finance, Communications, Information Technology, Human Resources and Social Development, the Governor of the Public Investment Fund, the Secretary of the Economic Affairs Council Committee and the Deputy Minister of Economy and Planning. The responsibilities of the Shrek program are in line with the priorities of Vision 2030, and the broad-based support will cover many areas that may include regulatory, financial, operational, asset investment, and cooperation based on the specific needs of each major company in order to achieve its long-term investment ambitions. To benefit from the program, large companies must prove their ability to invest a minimum of 20 billion riyals over the next decade, and the ability to invest 400 million riyals in each project. And support for large companies will be studied on a case-by-case basis. A number of factors will be taken into consideration, such as job creation, infrastructure development, and the company’s investment history. The program is expected to enable large companies to increase their investment targets by 50% more than their current plans. And it participates in providing incentives to the participating companies, and the Ministry of Finance, Transport, Energy, Trade, Human and Interior Resources, Environment, Communications and Industry, Saudi Customs, the Saudi Industrial Development Fund, government agencies, and the Saudi Central Bank.

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