Who is eligible to apply for a loan from the Fund?
What are the principal criteria that must be or preferably be available in the
project?
Is the company still eligible if there is a foreign shareholding?
Will the Fund make grants as well as loans? How long will it take to process an application?
How long will the loan term be?
What is the maximum loan that SIDF grants? What Security will the Fund require?
What will the Fund require once the loan is drawn down?
Will the fund provide other assistance besides loans?
Does SIDF charge interest on its loan?
Will the Fund finance future capital expenditures of an existing project?
Why does the Fund require the sponsor to provide so much information?
Who is eligible to apply for a loan from the Fund?
Any Saudi registered company or establishment with a license to engage in
manufacturing industry within the Kingdom. A few types of industry no longer
qualify.
What are the principal criteria that must be or preferably be available in the
project?
1
.
be viable from a marketing, technical and financial point of view.
2
.
offer scope for employing and training Saudi citizens.
3
.
able to utilize locally available raw materials
4
.
to be integrate with other projects in the Kingdom or other GCC countries.
5
.
replace imported products.
6
.
aims at exporting.
7
.
be able to bring advanced technology.
Is the company still eligible if there is a foreign shareholding?
Yes, the Fund will finance any Registered Company in Saudi Arabia even if it is
a 100 % non-Saudi as long as it meets SIDF financing criterion.
Will the Fund make grants as well as loans?
No, all Fund financing is in the form of loans repayable in accordance with an
agreed maturity schedule.
How long will it take to process an application?
That depends upon how complete the information provided by the applicant to the
Fund. As a guide, it should take less than four months if full information is
provided at the beginning.
How long will the loan term be?
The grace period, repayment installment amounts and maturity dates are
determined on the basis of the results reached through the study of the
project's potential cash flow, taking into consideration that the maximum term
of a loan is fifteen years.
What is the maximum loan that SIDF grants?
The maximum loan that SIDF grants is SR 600 million but that is granted only to
Joint Stock Companies , Closed Joint Stock or limited Liability Companies in
which a minimum of 20% it’s shares are owned by a Local Joint Stock Company or
foreign partner with strong financial /technical resources.
What Security will the Fund require?
The Fund will require:
a mortgage on the project fixed assets.
personal or corporate guarantees from the shareholders of limited liability
companies.
possibly outside security in the case of a more risky project.
What will the Fund require once the loan is drawn down?
The Fund will require:
(a) Audited financial statements to be presented to the Fund within 3 months
after the end of each Financial Year.
(b) Unaudited quarterly statements to be presented to the Fund within 30 days
after the end of each quarter.
(c) Insurance documents to be presented once a year. SIDF must be noted as loss
beneficiary and the insurance amount must be acceptable to the Fund.
(d) A Fund representative will visit the factory from time to time, on average
twice a year.
(e) Principal and fees to be repaid on the due dates.
Will the fund provide other assistance besides loans?
SIDF will provide assistance to financed projects on request to help resolve
problems in managerial, technical, marketing, financial and accounting matters.
(Please refer to SIDF Consulting Services Guide).
Does SIDF charge interest on its loan?
No, but the Fund will charge a pre-determined evaluation charge to cover its
costs of studying and evaluating the application, and follow-up costs as billed
by the Fund once every six months during the relationship with the project.
Will the Fund finance future capital expenditures of an existing project?
Yes, provided that they are feasible. A loan request will be treated in the
normal manner but the procedure will be simpler since the sponsor has already
submitted the majority of the information when the original loan was approved.
Why does the Fund require the sponsor to provide so much information?
In order for the sponsor to take a rational decision first, sufficient
information should be assembled before presenting the loan application to the
Fund. Accordingly, requesting such information will contribute to a more
complete acquaintance of the sponsor with his project at an early stage which
in turn should enhance his planning capability and future prospects of the
project.
