Saudi firms provide bank guarantees for feedstock supply, says Alkhorayef

All companies that receive feedstock supplies in Saudi Arabia are required to provide bank guarantees and securities, Bandar Alkhorayef, Minister of Industry and Mineral Resources, said in a tweet.

He added that the ministry is adopting a clear mechanism for licensing industrial projects, noting that sponsorship transfer is very limited.

Alkhorayef further explained that the ministry is committed to using the sponsorship transfer from companies to plants in a proper manner, following the cabinet’s decision to pay expat fees for the industrial sector employees.

Elsewhere, the minister expected the new crackers law to be issued soon, nevertheless he stressed that existing crackers are currently operating.

In addition, Alkhorayef said the workforce provided by manpower companies falls under the Saudization system through Ajeer program. Otherwise, the Saudization rates will be applicable to service providers.