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 Distribution of Loans by Sector

 

Reviewing of the major industrial sectors, itemized by approved loan value, signifies the following salient features:

 

Chemical Industries:

Cumulative Amount of Loans:

This sector still leads all other sectors in terms of amount of loan commitments since SIDF's inception until the fiscal year-end of 1436/1437H (2015). Cumulative commitments extended to the sector totaled SR 52,074 million, representing 40% of the total value of loans approved by the Fund during the period.

 

Projects Approved During 1436/1437H (2015):

During FY 1436/1437H (2015), SIDF approved for this sector 50 loans at value of SR6,631 million, representing 32% and 58%  of total number and value of loans approved during the year, respectively. Hence, this sector ranks first in terms of number and value of approved loans, which were provided to support setting up of 40 new industrial projects and expansion of 10 existing industrial projects.

 

SIDF Cumulative Loan Commitments Approved to Chemical Industries

(SR million)



 

 

Among the loans committed to this sector in 1436/1437H (2015) are two loans at value of SR 2,200 million approved during the reporting year to support setting up of two projects in Traif, one project for production of sulfuric acid and the other project for production of phosphoric acid. Other two loans worth SR1,800 million were also provided to support financing two projects in Ras Al-Khair, one for production of ammonia and the second project for production of single-and dual-ammonia phosphate. Two more loans at value of SR1, 418 million were approved for setting up of two projects in Yanbu, one for production of titanium dioxide and the second for production of hydrogen gas. Two further loans worth SR250 million were granted for setting up of two factories for manufacturing medicines and pharmaceutical products, one factory in Riyadh and the other in Hail, in addition to a loan of about SR167 million intended to support set up a plastic pipes and fittings factory in Hail.

 

The Fund's loans to expansion projects included two loans, one at value of SR 119 million to finance expansion of a factory in Riyadh producing sodium hypochlorite,  hydrochloric acid and caustic soda, and a loan amounting to about SR116 million to expand a plastic woven bags factory in Jeddah.

 

 

Engineering Industries:

Cumulative Amount of Loans:

This sector comes second in terms of loans approved since the Fund's inception until FY 1436/1437H (2015). Cumulative commitments of loans approved to this sector totaled SR 24,136 million, accounting for 19% of the total value of SIDF approved loans.

 

Projects Approved During 1436/1437H (2015):

During FY 1436/1437H (2015), SIDF approved to this sector 28 loans at value of SR 769 million, representing 18% of the total number of loans approved during the year and about 7% of their value. Thus, the sector ranks third and fourth in terms of number and value of approved loans respectively. These loans are provided to support setting up of 24 new industrial projects and expansion of 4 existing industrial projects.

 

Among new loans approved to finance this sector during the reporting year include three loans worth SR229 million to setting up three steel billets factories , two of which located in Al-Kharj and the third in Jubail.  Three loans worth approximately SR 85 million were also provided for setting up of 3 factories in Sadir, one for production of electricity boards, the second for production of telephone wires, and the third factory is for manufacturing of playground equipment.  This in addition to a loan of about SR43 million to support setting up of electrical transformers plant in Bahra.

 

SIDF Cumulative Loan Commitments Approved to Engineering Industries

(SR million)




 

SIDF provided three expansion loans,  specifically a loan of SR152 million to finance expansion of a steel pipe fittings plant in Dammam; a loan of SR 39 million to finance expansion of raw aluminum factory in Riyadh; in addition to a loan at value of SR17 million to finance expansion of valves plant in Dammam.

 

Consumer Industries:

Cumulative Amount of Loans:

This sector ranks third in terms of value of the approved loans, to which SIDF's cumulative commitments during the year totaled SR 21,780, accounting for 17% of the total loans approved by SIDF since its inception until the FY-end of 1436/1437H (2015).

 

Projects Approved During 1436/1437H (2015):

During FY 1436/1437H (2015), SIDF approved to this sector 38 loans at value of SR 1,651 million, accounting for 25% and 14% of total number and value of the approved loans respectively. The loans committed to this sector during the reporting year contributed to setting up of 35 new industrial projects and expansion of 3 existing projects.

 

Among new loans approved to this sector during the reporting year are a loan worth SR 840 million to finance setting up of a sugar refinery plant in Jizan; a loan of SR 132 million to finance setting up an animal feed factory in Yanbu; a loan of nearly SR 66 million to finance setting up coffee and nuts factory in Sadir; a  loan worth about SR60 million for setting up of cakes, Mamoul , chocolates and ice cream factory in Al-Kharj; in addition to three more loans at value of SR 65 million for setting up three bottled drinking water projects in Waddi Al-Dowassier, Madinah Al-Munwarrah and Shuqra.

SIDF Cumulative Loan Commitments Approved to Consumer  Industries

(SR million)

 

 

 

 

SIDF approved two expansion loans, one of SR170 million for expansion of starch and glucose factory in Al-Kharj; and other loan at value of about SR26 million for expansion of croissant factory in Jeddah.

 

Cement Industry:

Cumulative Amount of Loans:

Since SIDF inception until FY-end of 1436/1437H (2015), the cumulative amount of loans committed to cement sector totaled SR 11.603 million, representing about 9% of total value of the loans approved by the Fund, thereby ranking fifth in terms of total value of committed loans.

Projects Approved During 1436/1437H (2015):

No loans have been committed to the cement sector during the reporting  year due to the fact that no investor has applied for SIDF loan because the  local installed capacities of the cement industry  are currently sufficient to meet the domestic demand for this commodity.

 

SIDF Cumulative Loan Commitments Approved to Cement  Industries

(SR million)


 

 

Other Building Materials Industries:

Cumulative Amount of Loans:

The cumulative amount of SIDF loans committed to this "other building materials" sector until the year-end of 1436/1437H (2015) totaled SR 13,279 million, representing 10% of the total value of loans approved by the Fund for industrial projects since its inception. This ranks the sector fourth in terms of value of the loans approved.

 

Projects Approved During 1436/1437H (2015):

During the year 1436/1437H (2015), SIDF approved for this sector 27 loans at value of SR680 million, accounting for 17%  and  approximately 6% of number  and value of the approved loans respectively,  bringing the sector to fourth and fifth ranks in terms of number and value of approved loans respectively.  Loans are provided to this sector to contribute in setting up 24 new industrial projects and expansion of 3 existing industrial projects.

 

Among new loans approved to this sector during the reporting year include two loans worth about SR163 million for setting up two red bricks factories in Darmaa and Al-Kharj; a loan at value of SR 137 million for setting up a factory producing faience tiles for walls and floors in Yanbu;  a loan amounting to SR61 million for setting up a plant for production of insulated hollow concrete blocks in Zulfi;  along with 4 more loans worth about SR53 million for setting up four ready-mixed concrete factories in each of Medina Al-Munarrah, Jizan, Rass and Sharourah.

 

 

SIDF Cumulative Loan Commitments Approved to Other Building Materials Industries

(SR million)



 

SIDF approved 3 expansion loans totaled SR59 million to finance expansion of three factories in Riyadh, one for production of sanitary ware and extension supplies, the second producing dry silica sand, and the third is insulated glass factory.

 

Other Industries:

 

Cumulative Amount of Loans:

SIDF cumulative amount of loans committed to this sector since SIDF inception until FY-end of 1436/1437H (2015), totaled SR 6,553 million, representing 5% of the total value of loans approved by the Fund,  thereby ranking the sector sixth in terms of value of loans approved.

 

Projects Approved During 1436/1437H (2015):

During 1436/1437H (2015), SIDF approved for this sector 12 loans at value of SR 1,707 million,  accounting to about 8% and 15% of number and value of approved loans respectively. This ranks the sector fifth and second in terms of number  and value of loans approved during the year respectively. Interestingly, the value of loans approved for this sector has markedly increased due to SIDF's recent trend towards financing industrial cities' infrastructural projects, industrial support and logistical projects, and mining industries projects.  SIDF loans to this sector provided during the year were intended to contribute to setting up 12 new industrial projects.

 

Among new loans committed for this sector during the reporting year, consistent with the Fund's endeavor to underpin the industrial support and logistical services projects, SIDF provided a loan of SR900 million for setting up electricity and industrial water plant in Yanbu;  a loan of SR660 million for setting up a project for production and distribution of water in Jubail Industrial city, in addition to a loan amounting to SR37 million for model factories project in Riyadh. Other three loans at value of SR 23 million, SR19 million, and approximately SR 13 million were provided to finance setting up a warehouse project located in Jeddah industrial city, an industrial waste plant in Rabigh, and  a transport and storage systems project in the second Industrial city in Dammam.

 

Projects that have become operational during 1436/1437H:

 

SIDF-financed industrial projects which started up commercial production during the year totaled 29 projects, 18 of which are new and the remaining 11 are expansion of already existing projects. Breakdowns of these projects are illustrated in the Table below:

 

 

Sector

Number of Projects became operational

during the Report Year

Projected Workforce Numbers

 

 

 

Chemical Industries

12

463

Consumer Industries

6

1452

Other Building Materials Industries

6

1959

Engineering Industries

4

285

Other Industries

1

57

Total

29

4216