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 Introduction

 

SIDF has continued its outstanding performance in developing the local industrial sector. The number of loans approved by the Fund during the year amounted to 155 worth SR 7.943 million, and they helped to set up 136 new industrial projects and expand 19 existing ones, with total investments of SR 17 billion. The amounts disbursed during the year stood at SR 6,377 million, decreasing by 11% of the total amounts disbursed in the preceding year. On the other hand, the amount of loans repaid by borrowers during the year totaled SR 4,334 million.

 

SIDF approvals during FY 1437/1438H (2016) signify that new  industrial projects' share of SIDF total approved loans was greater than expansion projects' share. During the year, 136 loans were provided to finance new industrial projects valued at SR 6,526 million, accounting for 88% and 82% of the total number and value of SIDF approved loans respectively.

 

SIDF lending activity during the fiscal year 1437/1438H (2016) featured a higher rate of loans provided to industrial projects located in the promising regions and cities in terms of number (51%) and value (25%) of the total SIDF approved loans. Contrastingly, these percentages were as much as 14% less than the total number of  approved loans and 15% of their value before implementation of the rules under which the Fund's financing to industrial projects located in the less-developed regions and cities was increased from 50% to up to 75% of the project cost, and the repayment period was extended from 15 years to up to 20 years.

 

A further feature of SIDF achievements during FY 1437/1438H (2016) is the high percentage of loans approved to small industrial projects (With loans up-to SR15 million each), accounting for 61% of the total number of loans  approved by the Fund during the FY.

 

Overall and since its inception in 1394H until FY-end of 1437/1438H, the Fund approved a total of 4079 loans at a value of SR137,368 million. The loans helped to set up 2,988 new industrial projects and expand 1,091 existing ones Kingdom-wide.  Furthermore, the loans disbursed under these approved commitments totaled SR 94,821 million, of which SR 59,333 million was repaid.  These figures significantly testify to the success of the projects which benefited from the SIDF's loans and the professional expertise advisory services it has provided, particularly in the technical, managerial, financial, and marketing areas.

 

Approved Loans, Disbursements and Repayments (SAR millions)