diff --git a/go.mod b/go.mod
index 2b605830a3..06ca2d2361 100644
--- a/go.mod
+++ b/go.mod
@@ -108,6 +108,7 @@ require (
 	golang.org/x/sync v0.8.0
 	golang.org/x/sys v0.26.0
 	golang.org/x/term v0.25.0
+	golang.org/x/text v0.19.0
 	google.golang.org/api v0.189.0
 	google.golang.org/genproto/googleapis/api v0.0.0-20240711142825-46eb208f015d
 	google.golang.org/grpc v1.65.0
@@ -279,7 +280,6 @@ require (
 	golang.org/x/exp v0.0.0-20240719175910-8a7402abbf56 // indirect
 	golang.org/x/mod v0.20.0 // indirect
 	golang.org/x/net v0.30.0 // indirect
-	golang.org/x/text v0.19.0 // indirect
 	golang.org/x/time v0.5.0 // indirect
 	golang.org/x/tools v0.24.0 // indirect
 	gomodules.xyz/jsonpatch/v2 v2.4.0 // indirect
diff --git a/pkg/asset/installconfig/aws/permissions.go b/pkg/asset/installconfig/aws/permissions.go
index 0274a7010c..f3e47e7f11 100644
--- a/pkg/asset/installconfig/aws/permissions.go
+++ b/pkg/asset/installconfig/aws/permissions.go
@@ -493,9 +493,9 @@ func RequiredPermissionGroups(ic *types.InstallConfig) []PermissionGroup {
 func PermissionsList(required []PermissionGroup) ([]string, error) {
 	requiredPermissions := sets.New[string]()
 	for _, group := range required {
-		groupPerms, ok := permissions[group]
-		if !ok {
-			return nil, fmt.Errorf("unable to access permissions group %s", group)
+		groupPerms, err := Permissions(group)
+		if err != nil {
+			return nil, err
 		}
 		requiredPermissions.Insert(groupPerms...)
 	}
@@ -503,6 +503,15 @@ func PermissionsList(required []PermissionGroup) ([]string, error) {
 	return sets.List(requiredPermissions), nil
 }
 
+// Permissions returns the list of permissions associated with `group`.
+func Permissions(group PermissionGroup) ([]string, error) {
+	groupPerms, ok := permissions[group]
+	if !ok {
+		return nil, fmt.Errorf("unable to access permissions group %s", group)
+	}
+	return groupPerms, nil
+}
+
 // includesExistingInstanceRole checks if at least one BYO instance role is included in the install-config.
 func includesExistingInstanceRole(installConfig *types.InstallConfig) bool {
 	mpool := aws.MachinePool{}
diff --git a/pkg/asset/permissions/permissions.go b/pkg/asset/permissions/permissions.go
index f34f5b7bf9..4ed3983a2a 100644
--- a/pkg/asset/permissions/permissions.go
+++ b/pkg/asset/permissions/permissions.go
@@ -4,7 +4,10 @@ import (
 	"context"
 	"encoding/json"
 	"fmt"
+	"strings"
 
+	"golang.org/x/text/cases"
+	"golang.org/x/text/language"
 	iamv1 "sigs.k8s.io/cluster-api-provider-aws/v2/iam/api/v1beta1"
 
 	"github.com/openshift/installer/pkg/asset"
@@ -66,21 +69,27 @@ func (o *Permissions) Generate(ctx context.Context, dependencies asset.Parents)
 }
 
 func (o *Permissions) writePolicy(groups []awsconfig.PermissionGroup, filename string) error {
-	perms, err := awsconfig.PermissionsList(groups)
-	if err != nil {
-		return fmt.Errorf("failed to generate permissions list: %w", err)
+	policy := iamv1.PolicyDocument{
+		Version:   "2012-10-17",
+		Statement: []iamv1.StatementEntry{},
 	}
 
-	policy := iamv1.PolicyDocument{
-		Version: "2012-10-17",
-		Statement: []iamv1.StatementEntry{
-			{
-				Effect:   "Allow",
-				Action:   perms,
-				Resource: iamv1.Resources{"*"},
-			},
-		},
+	caser := cases.Title(language.English)
+	for _, group := range groups {
+		groupPerms, err := awsconfig.Permissions(group)
+		if err != nil {
+			return err
+		}
+		// Sid must be alphanumeric
+		sid := strings.ReplaceAll(caser.String(string(group)), "-", "")
+		policy.Statement = append(policy.Statement, iamv1.StatementEntry{
+			Effect:   "Allow",
+			Action:   groupPerms,
+			Resource: iamv1.Resources{"*"},
+			Sid:      sid,
+		})
 	}
+
 	policyBytes, err := json.Marshal(policy)
 	if err != nil {
 		return fmt.Errorf("failed to marshal permissions policy: %w", err)