Saudi Arabia’s National Development Fund disburses over $8bn in financing

Image credit: FAYEZ NURELDINE/ Getty Images

Saudi Arabia’s National Development Fund (NDF), its supervised development funds and banks disbursed more than $8bn(SAR30bn) across different sectors and segments of the economy in the first quarter of the year to drive growth, according to state-run Saudi Press Agency.

The Saudi Industrial Development Fund (SIDF) approved over SAR875m in financing for 24 businesses. SIDF signed an agreement with the Small and Medium Enterprises General Authority (Monsha’at) to operate the programme “How to start your industrial project?” that targets empowering entrepreneurs and facilitates their enrollment in the industrial sector.

The fund also supported over 100 beneficiaries through the industrial fund’s academic and advisory programmes.

Similarly, the Tourism Development Fund (TDF) approved over SAR260m in financing to 11 businesses in the tourism sector and served 57 beneficiaries through its pre-financing counselling and logistical support programmes.

TDF signed MoUs with various local and international companies as part of the fund’s strategies to attract private sector investors. The MoUs include a financing agreement with Ezdihar Real Estate Development Company to establish the Jeddah Cove project and an agreement with Ashraq Development Company to develop a tourist resort on the Half Moon Bay.

Saudi Arabia drives economic diversification

Saudi Arabia’s Cultural Development Fund (CDF) disbursements exceeded SAR15m and the fund issued guarantees to the tune of SAR16m during the quarter. CDF also unveiled a program for financing the film sector with a budget of SAR879m as part of Ignite initiative to provide financing and investment solutions to encourage an active and sustainable film sector.

During the first three months of the year, the Human Resources Development Fund provided SAR2.2bn to over 836,000 individuals and 73,000 enterprises in employment support programs, empowerment programs, job search assistance and training. The kingdom’s Small and Medium Enterprises Bank facilitated SAR1.1bn in financing through the financing portal and the indirect lending initiative to 301 SMEs.

The country’s Social Development Bank provided financing to about 9,000 individuals, with a value amounting to SAR454m in Q1 2023 and to about SAR1.5bn to 25,000 freelancers and 3,000 small and emerging enterprises received a combined SAR1.1bn.

SDB also approved SAR14.2m in funding to grow Saudi Arabia’s Gaming and Esports.

Other funds that were disbursed in Q1 2023 include SAR16.4bn from the Real Estate Development Fund while the Agricultural Development Fund provided more than SAR2.6bn in funding to 2086 individuals and 21 establishments.

Saudi Arabia’s non-oil exports

The Saudi Export-Import Bank (Saudi EXIM Bank) provided credit facilities to support Saudi non-oil exports to the tune of SAR4.26bn during the same period under review, the share of the insurance products reached SAR2.3bn and the share of financing products was valued at SAR1.96bn.

The kingdom’s Saudi Fund for Development (SFD) also deposited $5bn in the Central Bank of Turkey to bolster economic stability in the country, provided oil derivatives $1bn in financial aid to Pakistan and agreed to provide $80m to finance the expansion of the University of the West Indies in Antigua and Barbuda.

Saudi Arabia signed an MoU to develop the Special Economic Zone in Ad Dhahirah in Oman, a project that is valued at SAR1.2bn and is expected to stimulate trade, foster economic partnerships, devise new industrial solutions, and promote sustainable economic growth between the two nations.

The Gulf state also reaffirmed its commitment to aid Least Developed Countries (LDCs) and allotted $800m to finance development projects across Africa and Asia.

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