Second, is the large group of factories licensed by the Government and best described as the “formal” manufacturing sector. Most of these enterprises are privately sponsored and eligible for Saudi Industrial Development Fund (SIDF) loans. Their output is geared primarily to the domestic market, which is very open and competitive. A range of investment incentives is available to companies, following a screening procedure; for example, sites with low-tariff energy and utility services, industrial estates, SIDF loans, preferential purchases by State organizations, training grants and, in some cases, tariff protection.

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