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 SIDF Participates in the Fourth Saudi Manufacturing Industries Forum

SIDF Director General, Abdulkarim Al-Nafie, participated in the fourth Saudi manufacturing industries forum about facilitating the investment in manufacturing industries sector.

He affirmed that the Fund will continue playing its vital role in supporting different industries including manufacturing industries, and will aim for integration with different agencies to serve the investor and facilitate the procedures.

In addressing a meeting held with the Young Entrepreneurs at Riyadh Chamber of Commerce, SIDF Director General, said that: " We are in the process of developing the local content in cooperation with the Ministry of Commerce and Industry and major companies in the Kingdom, and that 67% of the SIDF-financed projects are small enterprises, accounting for 13% of the total value of SIDF approved loans".

Riyadh 28 April 2016: SIDF Director General ( DG), Abdulkarim Al-Nafie, affirmed that the Fund is currently in the process of developing the businesses and local content in cooperation with the Ministry of Commerce and Industry, sister industrial agencies and major companies. These companies have huge purchases worth billions, and the development project's aim is to localizing  the industries on which these companies depend on as sources of supply of their purchases, outlining that the development project is aligned with the strategy of the national industrial transformation and localization trend of industries.

During an open gathering with the members of the Young Entrepreneurs Committee at Riyadh Chamber, and in presence of many young entrepreneurs, led by Mr. Ali Al-Othaim, a member of the Chamber's Board and President of Young Entrepreneurs Committee (YEC), Al-Nafie outlined the Fund's intention to no longer financing certain industries based on supply and demand balance, except for export oriented projects; urging entrepreneurs seeking for their projects to be financed by the Fund, to search for industrial fields of value added manufactures.

In the event, the SIDF's role was highlighted in supporting the young entrepreneurs owners of early-staged enterprises, along with the types of projects that are eligible to SIDF financing, the mechanisms and procedures of the Fund functionality and programs it provides for young entrepreneurs, besides the financing opportunities, the challenges that face the industrial sector and the mechanisms and procedures of financing young entrepreneurs' projects. Furthermore, the gathering briefed the audience with the latest SIDF strategies for achieving its objectives in line with the Saudi 2030 Vision.

DG Mr. Al-Nafie  shared with the audience in the gathering which was moderated by  YEC Vice-president Mr. Adnan Al-Khalaf, the Fund's extensive expertise, experiences, and the consultancy services it provides in connection with its loans. DG encouraged young entrepreneurs to utilize the model factories buildings located in MODON's industrial cities, for setting up of their industrial projects in these model factories to reduce associated risk and cost of construction.  Mr. Al-Nafie emphasized the Fund's endeavor to reduce the time needed for loan application processing by completing the electronic linkage with the stakeholders. 

Mr. Adel Al-Suhaimi, SIDF Assistant Director General/ Credit and Studies, answered the enquiries of entrepreneurs regarding credit processes carried out by the Fund, explaining that the overdue on SIDF loans  and the risk ratio is very minimal; while some participants called on the Fund to finance more bold projects or the project the Fund rejects for being of certain level of risk, citing that although such projects are high-risk but most of them are quality projects,  stressing that distinguished and unique projects are associated with risks for being new adventures.

Mr. Badr Al-Dhwayan, SIDF Credit Team Leader, highlighted briefly the vision, goals and strategy of the Fund, explaining that the Fund considers any project that is worth less than SR 20 million a small project. Small projects represent 67% of the total projects financed by the Fund and 13% of the total value of SIDF approved loans, stating that the fund assigned a special Section for small and medium projects. SIDF Director General further elaborated that such small and medium are not required to submit feasibility studies conducted by consultancy firms, but instead the Fund itself studies the viability of such projects based on its lending expertise and experience which will save money for the investors, to whom the Fund also provides technical, logistical, administrative and financial consultancy services.

Speaking about some of SIDF's accomplishments, Mr. Al-Dhwayan added "until the end of 2015, the Fund evaluated 4,997 loan applications at the value of SR 129 billion contributed to finance 2,852 industrial projects".

SIDF Director General was very responsive to the questions raised by young entrepreneurs, which focused on the industrial sectors that qualify to be financed by the Fund, procedures for loan processing, SIDF requirements and conditions for financing industrial projects, and the obstacles that need to be tackled by applicants, along with the facilities provided by the Fund.

Mr. Al-Othaim emphasized SIDF's developmental role in supporting, motivating and financing industrial projects, including the young entrepreneurs projects, which contributed to strengthening the Kingdom's industrial base and localizing the technologies, referring to as a drive towards diversifying the sources of income and reducing dependence on oil, one of the pillar of the national transformation plan and the Saudi 2030 Vision, recently  announced by H.R.H the Deputy Crown Prince Mohammed bin Salman bin Abdulaziz.

 

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