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Saudi’s $17.3bn industrial development fund raises lending limits

Saudi’s $17.3bn industrial development fund raises lending limits

The SIDF provides loans to industries including, chemicals, construction materials and food

The Saudi Industrial Development Fund (SIDF), which has an estimated capital of at least SAR65bn ($17.3bn, has raised its lending limits for both listed and private firms to attract investment.

The announcement comes after the SIDF and a number of other national development funds were brought under the the National Development Fund in October. It provides loans to industries including, chemicals, construction materials and food, according to Reuters.

Read: Saudi establishes national development fund, appoints two ministers

The lending limit for advanced projects from companies contributing to major cities has been increased to SAR1.2bn ($320m) and SAR300m ($80m) for regular projects, according to Saudi Press Agency.

The fund will also provide a net commitment of up to SAR4.5bn ($1.19bn) for projects of joint stock firms and SAR2.7bn ($720m) for private firms.

Listed companies that undertake projects in “promising regions and cities”, including the regions of Hail, the northern border Al-Jouf, Tabuk, Jazan, Najran, Baha and Asir, will be able to apply for a loan of up to SAR1.8bn ($480m), while the limit is SAR400m ($106.6m) for those in the private sector.

The net commitment for these projects is SAR6bn ($1.6bn) for joint stock firms and SAR3.6bn ($960m) for private sector firms.

SIDF director general Ibrahim Al-Mujal said the new limits would directly contribute to attracting and encouraging foreign investors by giving them additional incentives to develop projects.

On top of the limit increases the, percentage of an industrial project that can be supported by fund financing has been increased from 50 per cent to 75 per cent and the loan repayment period from 15 years to 20 years across the kingdom.

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