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The Saudi Industrial Development Fund (SIDF) was established by Royal Decree
(No. 3) issued on 26.02.1394H, with the objective of supporting the development
of the private industrial sector, by extending medium to long term loans for
the establishment of new factories and the expansion, upgrading and
modernization of existing ones in addition to the provision of guidance and
advice in administration, finance, marketing and technology to industrial firms
in Saudi Arabia. SIDF initiated its activities in 1394H (1974G) to work for
the achievement of its assigned targets, within the specific lending controls,
procedure and policy set out by the Royal Decree referred to its initial
capital was SR500 million, which has gradually increased to the current figure
of SR7 billion.
The supply of electricity to various commercial enterprises in the Kingdom as
well as assisting in the government scheme for the provision of electricity
supply to every area of the country. Additional tasks delegated to the SIDF
were programmes for the financing of the establishment of cold stores and
date-processing plants. Furthermore, the SIDF participated fully in another
Government programme for the establishment of hospitals and hotels.
Yet another significant aspect of the role of the SIDF has been its notable
contribution to the advancement of knowledge of the nature of, and pertinent
issues relating to, Saudi industry. It has periodically conducted
comprehensive studies of industries specific industrial sectors and the market,
focusing on performance and identifying obstacles in the way of industrial
expansion. SIDF also closely monitoring strategic issues relating to industry
in the Kingdom. To effectively carryout its various functions, SIDF has
recruited, trained and upgraded the qualifications of Saudi nationals to the
highest levels of professional, technical and administrative expertise.
SIDF, which is administratively linked to the Ministry of Finance and National
Economy, is a corporate entity represented by the Chairman of its Board of
Directors. The latter is composed of five members, including the Chairman, who
is appointed by the Council of Ministers on the recommendation of the Minister
of Finance and National Economy.
The Projects Department's chief activities are concerned with the processing of
loan applications; evaluation of projects; loan recommendations, and follow-up
procedures relating to borrowers' implementation of SIDF policy, and
performance. This department has ten/a number of specialized divisions: four
dealing with loans to specific industrial sectors and six ancillary/auxiliary
divisions which are concerned with activities such as Marketing Consultation
surveys, economic research and studies' Technical Consultation and Studies,
Information Analysis and Technical Assistance. Financial Auditing, and
coordination and loan follow-up procedures.
The primary consideration on the basis of which SIDF makes decision whether to
finance or reject industrial projects is their economic feasibility. Therefore,
a comprehensive assessment of potential projects is conducted to assess the
feasibility in terms of economic, financial and technological factors.
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