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 Saudi Industrial Development Fund has raised the financing ceiling for public companies to reach SR 1.8 billion

​In an effort to contribute to initiative programs to stimulate private sector enterprises to become public companies, SIDF announced raising the project financing limits as part of its incentives to the national public companies listed on the Saudi Stock Exchange (Tadawul).

The initiative includes raising the lending limits of a single loan for advanced projects from public companies located in the major cities to reach SR 1.2 billion while the lending limits for a single loan for privately held companies is 300 million Riyals. The net commitment for projects of public companies amounts to 4.5 billion riyals whereas it amounts to 2.7 billion Riyals for the privately held companies.

As for the advanced projects of the public companies in the promising regions and cities which include Hail, Northern Borders Region, Al-Jouf, Tabuk, Jazan, Najran, Al-Baha and Asir, the loan limits reached 1.8 billion Riyals for a single loan compared to 400 million Riyals for privately held companies. The net commitment for public companies amounts to 6 billion Riyals whereas it amounts to 3.6 billion Riyals for the privately held companies.

In this regard, Director General of the Saudi Industrial Development Fund Dr. Ibrahim Al Mojil stressed on the importance of this initiative which will directly contribute to attracting and encouraging investors, especially national public companies by giving them additional advantages and incentives to develop their projects. He added that even non-listed private companies will be motivated to put their shares on the market to benefit from the financing facilities provided by the Fund as a contribution for the Financial Sector Development Program in order to achieve vision 2030. Dr. Ibrahim also praised The Private Sector Stimulus Plan which is part of The Fiscal Balance Program 2017-2020 to achieve Vision 2030 and develop national industry. He said, "The plans adopted this year will contribute greatly to stimulating the Kingdom's economy and will rebuild the confidence of the private sector, especially with the allocation of 72 billion Riyals for the first part of the Stimulus Plan during the years of 2018 to 2020."

The services provided by the Fund to stimulate industrial investors exceed the financial support. The Fund provides a range of specialized advisory services in administrative, financial, technical and marketing fields for the borrowing projects. In addition, the Fund provides more incentives to attract quality investments and encourage investment opportunities by raising the financing percentage to reach 75% of the project cost in all of the Kingdom's regions instead of 50% as well as extending the repayment period to 20 years instead of 15 years along with many initiatives and products that meet the needs of investors in the industrial sector.

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