The Saudi Commission for Tourism and National Heritage (SCTH) has allocated SAR3bn ($800m) over the next three years to lend to hotel and tourism projects.
Saudi Press Agency reports that the initiative was approved by the Council of Ministers as part of the National Transformation Programme 2020.
It includes SAR397m ($105.8m) for the current year.
The commission’s vice president for investment and tourism development Hamad bin Mohammed Al-Samail was quoted as saying 40 tourism project funding requests had been received.
He said eight, with a total cost of SAR424m, had been processed and sent to the Ministry of Finance for approval, according to Arab News.
Last year the SCTH also signed a deal with the loan guarantee Kafala Progam to expand guarantees for tourism projects.
The kingdom is reportedly aiming to attract 1.5 million non-pilgrim tourists by 2020 from around 200,000 last year.