A number of successful joint venture projects have been established since the inception of the Saudi British Offset Programme.

These projects have covered a wide range of activities in the petrochemical, pharmaceutical, food processing, engineering, environmental and training sectors. Among the companies involved are Tate & Lyle, Glaxo Wellcome, Huntsman Corporation and Basell.
The programme is managed on the UK side by British Offset Office (BOO), a joint team formed from the UK Ministry of Defence and BAE Systems.
  The programme was designed to provide economic benefits for Saudi Arabia from its defence expenditure overseas.   A BOO spokesman explained how the programme also offered incentives to international companies seeking an opportunity in the Saudi market.
Its main objective was to diversify the kingdom’s economy through the creation of commercially viable and profitable projects that are not directly related to oil and gas and which introduce new technology into the kingdom through joint ventures or licensing agreements, he said. “The creation of joint venture companies also aims to mobilise private capital, to create much-needed jobs for Saudi nationals and to reduce imports,” he said.
“The scope of the programme covers all civil sectors (with the exception of the primary extraction of oil and gas), including both manufacturing and service ventures, and participation is not restricted to just UK companies; it is open to companies from most countries. 
“The BOO’s role is to identify new projects and opportunities that can be taken forward under the programme, to bring potential partners together and to provide detailed and confidential advice on the financing and other incentives provided under the programme.”
Probably the incentive that generates most interest from potential joint venture partners is the BAE Project Finance Initiative (BPFI) provided by BAE Systems.
“The BPFI offers cost and risk reductions, as well as helping to enhance business returns.  In short, for any project that qualifies under the programme, BAE Systems has made arrangements with a Saudi bank for a soft loan facility to be available to the non-Saudi (foreign) joint-venture partner,” the spokesman said.
“For every pound/dollar in equity or parent company guarantee that the foreign company is required to invest, an equal amount can be loaned via the facility, up to a maximum of $10 million per project. The non-recourse funding is loaned at a favourable rate and repayments are scheduled in-line with the projected dividend stream from the joint venture,” he explained. 
“The BOO is also able to offer free investment bank advice to companies in the early stages of a project.  Additionally, because of the Government-to-Government nature of the programme, the BOO has high level links into the Saudi Government and can therefore help with any difficulties that may arise during the licensing and approvals phases of a project, or once a project is up and running.”