The Kingdom of Saudi Arabia is expanding its $28 billion Saudi Industrial Development Fund (SIDF) in an effort to provide financing for energy, mining, and logistics projects, media reports said. The decision stems from its aim to develop the kingdom’s industries.
SIDF in a statement told Bloomberg that the companies will be able eligible for additional financing options which also includes multi-purpose term loans and acquisition financing. The fund said that although its special focus is on businesses in the Kingdom, there is some ‘flexibility’ to provide finances for foreign companies.
Foreign businesses with Saudi investors are also eligible to receive financing from the fund. Previously, the fund financed companies mainly in local manufacturing.
The fund said that it has ‘evolved’ from providing finance to one major sector through a single financial product to four major sectors through a range of financial products. The fund was formed in the 1970s. The government increased the fund’s capital by 60 percent in January this year.
Saudi officials are focusing on industries such as manufacturing, logistics and mining. “After 45 years of work, SIDF continues to contribute to a wide range of programs and services that will meet our ambitious goals under the Kingdom’s Vision 2030 to bolster the industry’s needs and meet its requirements, while providing first-class support to enterprises operating in the sector,” SIDF Director-General Dr Ibrahim Al Mojel said.
Saudi joint stock company Al Kathiri’s borrowed loan from SIDF is expected to be repaid over a seven-year period. The loan was for the construction of a 3D-printed concrete slab-making factory on Industrial Cities Authority land. The factory’s estimated value is at $8.6 million. The facility will start production next year.