DUBAI, June 7 (Reuters) - Saudi Arabia's stock market edged up in early trade on Tuesday after the government announced details of its economic reform plans.

Monday night's 110-page reform document contained hundreds of projects and targets, including substantial austerity measures. The government aims to reduce the value of public salaries and wages as a proportion of the state budget to 40 percent from 45 percent by 2020, and cut water and electricity subsidies by 200 billion riyals ($53 billion).

But the austerity steps were largely expected - the market had been falling in previous weeks because of those expectations - and the main stock index was 0.4 percent higher after 30 minutes of trade.

"The absence of a direct corporate tax and a tax on dividends are both positive catalysts for the Saudi equity market in the short term," said Mohamed el-Jamal, managing director of capital markets at Abu Dhabi's Waha Capital.

"Sectors that are expected to benefit from the plan are ones linked to religious tourism, private education, mining; whereas sectors like petchems and materials will see their subsidies phased out over the next few years."

Saudi Arabian Mining Co (Ma'aden) jumped 1.3 percent. The energy minister said the kingdom planned to issue new licences covering exploration for minerals and to build more industrial cities.

Medical insurer MedGulf , which could benefit from the plan's intention to develop the medical sector, rose 4.4 percent in unusually heavy trade.

Retailer Fawaz Abdulaziz Alhokair Co jumped 6.3 percent after it received an offer from a fund managed by a Dubai-based investment bank to buy its investment in Spanish clothing retailer Blanco for 350 million riyals ($93 million).

Among materials producers, Al Yamamah Steel slipped 3.4 percent.

(Reporting by Celine Aswad; Editing by Andrew Torchia) ((celine.aswad@thomsonreuters.com; +971 4 4536886; Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))