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 THE SAUDI INDUSTRIAL DEVELOPMENT FUND (SIDF) APPROVES 69 LOANS WORTH SR4.2 BILLION

​​THE SAUDI INDUSTRIAL DEVELOPMENT FUND (SIDF) APPROVES 69 LOANS WORTH SR4.2 BILLION TO FINANCE PROJECTS INVESTING MORE THAN SR13 BILLION DURING THE FIRST HALF OF THIS FISCAL YEAR 1436/1437H (2015)
 
95% of loan value is for setting up of new industrial projects 
57% of the number of the loans provided are for the small industrial projects
 
The SIDF’s performance during the first half of this fiscal year,1436/1437H, (2015), has been remarkable, as the Fund approved 69 loans provided to support financing the setting up of 60 new industrial projects, expansion of (9) existing projects, at a total value of SR4.2 billion, in investments totaling SR13.14 billion. This represents an increase by 10% in the number of the approved loans; 64% increase in the value of the loans provided, and an increase by 173% in the total amount of the investments, compared to the first half of the previous fiscal year, 1435/1436H.  These SIDF-financed projects are expected to create as much as 4373 direct jobs, an indication signifies positively to the extent of the confidence the investors placed on the Saudi industrial sector, and  reflects their belief in the Kingdom’s sustainable and stable development environment and promising outlooks for years to come, a statement by SIDF Director General, Mr. Abdulkarim bin Ibrahim Al-Nafie, said.
 
Mr. Abdulkarim Al-Nafie added that SIDF continues to effectively perform its essential role in the support of the industrial development Kingdom-wide, highlighting the increases in the number and value of the SIDF loans approved to finance industrial projects located in the promising regions during the first half of this fiscal year, 1436/1437H. They were (34) loans at value of SR1,325,000,000, representing 49% of the number of SIDF loans, 32% of their values, over the first half of this current fiscal year. If these compared with the year-end of 1432H, percentages of increase were no more than 14% and 15% increase in the number and value of the approved loans respectively, and that was before the Fund adopting the higher percentage criteria allowing it to finance up to 75%, instead of 50%, of the cost of the projects located in the promising regions, with repayment period extended from 15 years up to 20 years. The SIDF Director General pointed out that these results attest to the Kingdom’s successful policy aimed at accelerating the pace of growth and development in the promising regions. These results are attributed to the many incentives provided by the Fund to encourage industrial investment activities in these regions, including raising the maximum limits of the SIDF loans to SR1.2 billion for joint stock companies, SR400 million for sole proprietorship institutions and other companies. These SIDF-provided incentives reflect the Fund’s firm conviction on the need to achieve balanced development among the Kingdoms’ regions based on comparative advantages of each region and the Fund’s assumed role in raising the income levels and create appealing job opportunities for the work seekers of Saudi citizens.
 
Comparing between new industrial projects and expansion projects, Mr. Abdulkarim Al-Nafie highlighted that the Fund's performance during the first half of this current fiscal year emphasized obvious trends of increasing investment in the setting up of new industrial projects in comparison with the expansion of the existing plants. The number of the new industrial projects were 60 projects versus 9 expansion projects.  SIDF loans approved for the new projects accounting for about 87% of the number of SIDF loans during the first half of this fiscal year. The value of the loans approved for these new projects was approximately SR4 billion, a lion share of 95% of the total value of the loans approved during the first half of this fiscal year, with investments totaling SR12.7 billion, representing nearly 97% of the total amount of the project investments approved over this period.
 
With respect to SIDF support to the small industrial projects, which are eligible for maximum loans of SR15 million or less, SIDF DG pointed out that the Fund continues its support for these small projects for which SIDF approved (39) loan during the first half of this current fiscal year, at a total value of SR282 million, accounting for  57% of the number of the approved loans, with injection of investments of approximately SR547 million.
 
Commenting on the sectorial distribution of the value of the loans approved by the Fund during the first half of this current fiscal year, Mr. Abdul Karim Al-Nafie pointed out that consumer industries sector takes precedence over all other sectors at a value of SR2,089 million, followed by chemical industry sector at value of SR1,013 million, other industries sector at value of SR666 million, building materials industries sector at SR287 million, and engineering industries sector at value of SR142 million. Overall, the Fund approved 3838 industrial loans since its inception until the end of the first half of this current fiscal year 1436/1437H at total value of SR122.184 million, provided to finance setting up of 2777 industrial projects Kingdom-wide.
 
Mr. Abdul Karim Al-Nafie concluded his statement by announcing that the Fund looks forward to receive investors’ applications for SIDF loans to finance high technical content industries intended to enhance competitiveness of the national industry and boost its role in transforming the Saudi economy to a knowledge-based economy. He urged the investors to invest in different areas Kingdom-wide, and particularly in the promising regions to fully utilize the comparative advantages available in these regions as well as contributing to regional development. Mr. Abdul Karim Al-Nafie concluded by expressing his thanks and appreciation to the Custodian of the Two Holy Mosques and the Crown Prince and the Crown Crown Prince – may Allah protect them all - for their constant support of the Fund, and to H.E. Minister of Commerce and Industry, the Chairman of the SIDF Board of Directors, for his valuable effort and time in following up closely and ongoing directives for the Fund, and to the members of the Board of Directors for monitoring the Fund's businesses and their ongoing guidance.
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