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 Number of loans has Impressive Increase Of 60% Compared To The Same Period Of The Previous Year.

81% Of The Fund’s Loans Approved During The First Quarter Of
The Current Year  Were Extended To Small Industrial Projects.
28% Of The Approved Projects Will Be Implemented
In Less – Developed Areas.

The Number Of Loans Approved By
The Saudi Industrial Development Fund
During The First Quarter Of The Fiscal Year 1434/1435H (2013G)
Marks An Impressive Increase Of 60% Compared To The Same Period Of The Previous Year.

H.E. Ali Bin Abdullah Al – Ayid, Director General of the Saudi Industrial Development Fund highlighted positive results in the Fund’s lending activity during the first quarter of the fiscal year 1434/1435H (2013G). Such results are made manifest  in the increase of committed loans by 60% compared to the same period of the previous year. The Fund approved financing 32 industrial projects with total commitments amounting to SR 388.5 million. Investments of these projects totaled more than SR 787 million.

H.E. Ali Al – Ayid revealed that details of these new loans reflect not only positive indications in terms of quantity, but also positive trends in terms of quality that contribute to the best interests of the national economy. Small industrial projects (less than SR 15 million) acquired the majority of loans, i.e., 26 loans representing 81% of the total approved loans. Medium industrial projects (SR 15 – 50 million) were extended 5 loans or 16% of the total committed loans.

H.E. Ali Al – Ayid emphasized that SIDF follows this direction which perfectly fits and ideally integrates with the State’s programs and objectives regarding development of  small industrial projects. This direction attests to the success of SIDF’s efforts in dealing with this category of projects. This is particularly true after establishing a specialized division, within the Credit Department, with the objective of evaluating the loan applications of small industrial projects, assisting the sponsors of these projects, understanding their needs, discussing their ambitions and ideas regarding  industrial investment, helping them in concentrating their ideas and changing their plans if need be, and identifying and resolving the risks of their projects. Furthermore, the increasing number of industrial loan applications reflects the improvement of the economic environment in which these projects operate as well as the rising investment awareness among minor industrial investors.

In the same context, H.E. Ali Al – Ayid stated that 27 loans, representing 84% of the total committed loans, were extended for the establishment of new industrial projects  and only 5 loans were approved for the expansion of existing industrial plants. This provides an indisputable evidence of the amelioration of the industrial investment environment and its ability to attract new investments and create more job opportunities for the citizens. On the other hand, expansion projects, which had previously been granted loans by SIDF,  proved their success as they continued to expand their activities and enhance their product quality.

 H.E. Ali Al – Ayid pointed to other positive trends related to the geographical distribution of the loans approved during the first quarter of the current year. Projects, in less-developed areas, granted loans account for 28% of the total borrower projects. By comparison, only 16% of the total approved loans, since SIDF inception up to the end of the fiscal year 1433/1434H, has been extended to projects  in less-developed areas. Such developments resulted from SIDF’s  motivating policy of supporting establishment of industrial projects in less-developed areas and towns. It is noteworthy that projects to be built in these areas are new industrial investments which would contribute to sustaining balanced development among the regions, creating new job opportunities and raising income levels in these areas.

Reviewing the value of loans committed by the Fund during the first quarter of the current fiscal year, H.E. Ali Al – Ayid indicated that the Chemical Industries Sector led the other sectors by commitments totaling (SR 124 million), followed by the Other Building Materials Sector (SR 107.7 million), the Consumer Industries Sector (SR 84.8 million), the Engineering Industries Sector (SR 75.5 million) and lastly, the Other Industries Sector (SR 1.5 million). In terms of number, loans committed during the first quarter of the current fiscal year were distributed in the amount of eight loans for each of the Consumer Industries Sector, the Chemical Industries Sector and the Other Building Materials Sector ; seven loans for the  Engineering Industries Sector ; and one loan for the Other Industries Sector.

Overall, since inception up to the end of the first quarter of the current fiscal year 1434/1435H, SIDF has approved a total of 3512 loans amounting to SR 105.8 billion. These loans have assisted in the establishment of 2499 industrial projects throughout the Kingdom.

The performance of the Fund –run Small and Medium Enterprises Loan Guarantee Program  has been outstanding during  the first quarter of the current fiscal year 1434/1435H (2013G) compared to the first quarter of  last year. During  the first quarter of the current fiscal year, the Program approved 488 guarantees of SR 257 million against a total commercial banks financing of SR 448 million, i.e. , growth rates of 54% and 43% in terms of  number and value of guarantees as well as a growth rate of 35% over the total commercial banks financing extended in the same  period of the previous year. Thus, since its initiation in the fiscal year 1426/1427H (2006G) up to the end of the first quarter of the fiscal year 1434/1435H (2013G), the Small and Medium Enterprises Loan Guarantee Program has approved 4756 guarantees totaling SR 203 billion against a total commercial banks financing of SR 4.8 billion extended to 2887 small and medium enterprises comprising different sectors in all administrative regions of the Kingdom.
 


 

 

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