The Initiative to Improve the Regulatory and Legislative Environment in the Industrial Sector

The Initiative to Improve the Regulatory and Legislative Environment in the Industrial Sector is one of the initiatives of the Ministry of Industry and Mineral Resources in the Kingdom of Saudi Arabia. Its goal is to enhance the regulatory and legislative environment by developing and adopting the Industrial Sector Governance Document and localizing the promising sectors targeted by the National Industrial Strategy. This strategy was launched by the Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs, His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz Al Saud, on October 18, 2022.

The Initiative to Improve the Regulatory and Legislative Environment in the Industrial Sector, along with other initiatives launched by the Ministry of Industry and Mineral Resources, contributes to creating added value for the national economy. It enhances and diversifies economic impact, fosters an attractive investment environment in the industrial and mining sectors, and provides an integrated infrastructure that attracts high-quality investments.

The initiative aims to enhance and improve the efficiency of the relationship between the Ministry of Industry and Mineral Resources and other ministries, as well as between the ministry as a legislative authority and other entities within the system. It seeks to ensure the alignment of the regulations of other relevant entities with the industrial sector and the objectives of the National Industrial Strategy. Additionally, the initiative involves the establishment and operation of a unit for evaluating legislation and policies to improve the mechanism of industrial legislation and continuously assess it. This contributes to enhancing legislative effectiveness and mitigating any undesirable economic impacts.

Additionally, the initiative aims to catalog the laws, resolutions, and legislation related to the industrial sector, as well as streamline the investor journey in localizing industries targeted by the National Industrial Strategy. It also seeks to review these regulations and propose enhancements and additions, such as improving legislation for incentives and financial exemptions for industrial investments, reviewing and updating the regulations of the High Commission for Industrial Security, enhancing the legislative environment for venture capital investment, strengthening mechanisms for protection, fair competition, and combating commercial fraud in strategic industries, incorporating national products into mandatory lists, and supporting and activating adherence to local content in government procurement.