SIDF - Report 2021

Chairman's Message

Mr. Bandar bin Ibrahim Alkhorayef

Since the launch of the Vision in 2016 and until 2021, the SIDF approved 869 loans worth SR 69 Billion; 40% was allocated to promising regions and cities and 79% to SMEs in terms of the number of loans.

CEO’s Message

Dr. Ibrahim bin Saad Al-Mojel

Over the course of 47 years, the SIDF played a pivotal role in empowering national industry through the provision of financing and advisory products and services. This role was expanded to contribute to the achievement of the objectives of Saudi Vision 2030, as the Fund became, in 2019, the chief financial enabler of the NIDLP and expanded its activity to include the industrial, mining, energy, and logistics sectors

In support of the Kingdom’s digital transformation process, the SIDF has increased the number of loans in this field by 38%.

The SIDF Academy offered 36 training programs to more than 4,300 trainees from 300 governmental and private entities.

Lending Activity during 2021

The Fund continued its outstanding activity in the development of the local industrial sector, effectively while granting it a wide range of loans to support projects in various sectors in the Kingdom of the fiscal year 2021. The Fund’s performance this year was marked by a high percentage of loans approved by the Fund for industrial projects located in promising regions and cities; According to the facts and figures shown below

Number of approved loans

0

loans

0

SR Billion

Disbursed Amounts

0

SR Billion

Repaid Amounts

0

SR Billion

Loans for promising regions and cities

0

Loans

35% of the total loans

0

SR Billion

53% of the total loans

The local economy witnessed a recovery at the level of various economic sectors

The value of non-oil commodity exports jumped 36% compared to the previous year.

Trends and Indicators of the Local Economy

The COVID-19 pandemic continues to disrupt the global economy. However, the end of 2021 saw the start of the economic recovery phase following measures imposed by countries to overcome this crisis, namely, the easing of precautionary measures and restrictions on certain economic activities and the availability of vaccines, etc., which have positively reflected growth rates in global economies. The International Monetary Fund (IMF) projected that the global economy would grow by 5.9% in 2021

0 %

Average OPEC basket price rise in 2021 compared to previous year

0 %

Non-oil sector’s contribution to GDP for 2021

SIDF Lending Activity

Effective Performance with Promising Achievements

The Fund continued its outstanding activity in the development of the local industrial sector, effectively while granting it a wide range of loans to support projects in various sectors in the Kingdom of the fiscal year 2021. The Fund’s performance this year was marked by a high percentage of loans approved by the Fund for industrial projects located in promising regions and cities; According to the facts and figures shown below

2021		2020
Loan	Number of approved loans	Loan
SR Billion	Value of approved loans	SR Billion
SR Billion	Total investments	SR Billion
SR Billion	Disbursed amounts	SR Billion
SR Billion	Repaid amounts	SR Billion

SIDF Strategy

Enabling the Kingdom’s transformation into a leading industrial force and global logistics platform

Strategic Direction

During 2021, SIDF efforts focused on achieving the three major priorities of a number of initiatives and projects, complementing the strategic direction of the SIDF since 2018 in supporting it to fulfill its role as a financial enabler for the National Industry Development and Logistics Program (NIDLP). throughout the following axes:

Improving staff experience

SIDF is looking to establish a comprehensive approach that contributes to enhancing its work environment and improving staff experience.

Achieving excellence in customer experience

SIDF aims to achieve excellence in customer experience; by linking the success of SIDF to the success of the client.

Ensure Financial Sustainability

SIDF aims to enhance its long-term financial sustainability by improving financial efficiency and disbursement and collection processes.

Stimulate investment in national priorities

SIDF works to stimulate private sector investments in national priorities and strategic sectors, to help advance the Kingdom's position as a global industrial and mining power in logistical services.

Increased economic impact of SIDF-funded projects

To maximize the economic impact of SIDF-funded projects, SIDF created a mechanism that measures the economic impact of SIDF-funded projects based on several criteria, including impact on GDP, local content rate, and other economic criteria, in alignment with the general framework of NDF.

SIDF Objectives for 2021

SIDF continues to apply best management and operational professional practices in accordance with the highest global standards of quality and efficiency in this field, in order to achieve its following strategic objectives:

Human Resource Development

Upskill, Enrich, Support, Qualify

As part of its efforts to develop the work environment across its channels and create an attractive competitive environment for top national talents and expertise, SIDF continues to apply the best international quality and efficiency standards. In fact, SIDF has realized several outstanding achievements in this context in 2021, including

0

employee

by end of 2021

0

employee

attracted across different departments

0 %

percentage of Saudi employees

Industry Study:

Overview of the renewable energy sector in the Kingdom

Introduction

Saudi Arabia is blessed with abundant natural resources of wind and solar irradiation, which offers the potential for incorporating renewable energy into the country’s energy mix as well as contributing to the transition of its economy away from fossil fuel dependency. This reflects the global shift towards “Net Zero”, where the amount of greenhouse gas produced is balanced or, ideally, exceeded by the amount removed from the atmosphere. This case study aims at offering an overview of the Renewable Energy sector in Saudi Arabia

The National Renewable Energy Program (NREP)

One of the enabling programs of Vision 2030 is the National Industrial Development & Logistics Program (NIDLP) whose strategy for the renewable energy (RE) sector aims at

01

Increasing the contribution of renewable energy (RE) to the energy mix through new projects and the assessment of various sources and advanced technologies in the field of renewable energy.

02

Creating jobs and work opportunities in renewable energy and rely on national workforce and supporting them through advanced training programs in this sector.

To this end, the revised National Renewable Energy Program (NREP) was announced in February 2019 and the Saudi Industrial Development Fund’s (SIDF) mandate was expanded, making it the financial enabler of NIDLP

NREP has set a target of 58.7 GW of installed capacity by 2030, split as follows

0

GW solar photovoltaic (PV)

0

GW onshore wind

0

GW hybrid generation + storage.

In Focus:

The Fourth Industrial Revolution in the Kingdom

Introduction

The Fourth Industrial Revolution first emerged as a phrase by scientists working on developing a high-tech strategy for the German government. Subsequently in 2015, Klaus Schwab, executive chairman of the World Economic Forum (WEF), introduced the phrase to a wider audience. The term represents the fourth major industrial period since the First Industrial Revolution of the 18th Century. A subset of the Fourth Industrial Revolution is Industry 4.0, often referred to as I4.0, and is a concept of networked connectivity and advanced data analytics, combined with cutting edge technologies, Artificial Intelligence, Additive Manufacturing, Augmented Reality, etc., to create flexible and dynamic automated smart factories.

Industry 4.0 is at an early stage, however, governments around the world have recognized the importance of adoption of the new manufacturing concepts in order to capitalize on the potential and have thus established strategic initiative programs, such as

These strategic initiatives are supported by multi-faceted networks of stakeholders including companies, associations, academia, and policymakers to drive the country’s Industry 4.0 mission forward

The Global market for industry 4.0 was valued at SR 430 Billion (USD 114.55 Billion) in 2021 and is projected to reach SR 1,414.87 Billion (USD 337.30 Billion) by 2029, at a CAGR of 19.4%

1,415 SR Billion

Global market value forecast for the Industry 4.0 in 2029

430 SR Billion

Global Market Value of the Industry 4.0 in 2021

Japan
Robot Revolution and
Industrial IoT Initiative

China
Made in China 2025

Saudi Arabia
The I4.0 initiative
forms part of the
overall Saudi Vision 2030.

France
Alliance Industrie du Futur

Italy
Piano Industria 4.0

Germany
Plattform Industrie 4.0

USA
Manufacturing USA

Lending Activity Statistics

Value of Cumulative Approved Loans, Disbursed, and Repaid Amounts (SR Million)

Year	Repaid Amounts	Disbursed Amounts	Approved Amounts
1433/1434H (2012)	41,526	70,636	105,415
1434/1435H (2013)	45,886	75,592	112,095
1435/1436H (2014)	50,346	81,276	117,987
1436/1437H (2015)	54,333	88,444	129,425
1437/1438H (2016)	59,333	94,821	137,367
1438/1439H (2017)	63,631	102,240	147,938
1439/1440H (2018)	68,688	111,629	157,378
1440/1441H (2019)	73,777	120,840	169,878
1441/1442H (2020)	77,051	125,490	187,495
1442/1443H (2021)	83,524	135,652	198,607*