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 SIDF Distinguished Performance during the 1st Quarter of the Fiscal Year 1436/1437H (2015G)

​​• 83% of the Number of Loans were Approved for New Industrial Projects.
• 54% of the Number of Loans were Approved for Small Industrial Projects.
• 49% of the Number of Loans were Approved for Industrial Projects in Promising Areas and Towns. 
• The Fund’s Commitments for Promising Areas and Towns have Increased by 150%.
• The Value of the  Fund’s Commitments have Increased by 106%.
                                                                          
The Saudi Industrial Development Fund achieved positive results during the 1st quarter of the fiscal year 1436/1437 H (2015G). Such results are made manifest in the approval of (35) loans in assistance of building (29) new industrial projects and expanding six existing ones. Total loan commitments totaled SR 701 million; their investments aggregated SR 105 billion. Compared to the 1st quarter of the previous fiscal year 1435/1436 H, this represented, respectively, an increase of 46% and 106% of the value and number of loans as well as a growth of 120% in the total investments. These projects are expected to provide (2102) employment opportunities which attest to the investors’ confidence in the industrial sector in the Kingdom and reflect their favorable expectations of the development process in the coming years.
 
This is revealed, in a press release, by H.E. Ali bin Abdullah Al-Ayed, the Director General of the Saudi Industrial Development Fund. In the same press release, H.E. Ali bin Abdullah Al-Ayed pinpointed the Fund’s continued efforts in support of industrial development in all parts of the Kingdom. He highlighted the noticeable increase of the value of SIDF’s loans to the promising areas and towns by 150% compared to the 1st quarter of the previous fiscal year. These loans amounted to SR 288 million compared to SR 115 million in the first quarter of the previous year. Hence, representing 41% of the total value of loans approved during the 1st quarter of the current fiscal year. H.E. Ali bin Abdullah Al-Ayed pointed out that such results provide irrefutable evidence of the success of the State policy of accelerating the development process in promising areas and towns. Likewise, such remarkable achievements reflect the government’s adoption of a number of incentives encouraging industrial investments in the said areas and towns. The government’s adoption of such incentives, including increase of the financing percentages for industrial projects in promising areas and towns, is attributed to its  conviction of the necessity to bring about balanced development among the regions of the Kingdom, utilize their abundant potentialities, contribute to increasing the income levels of their people and provide job opportunities for those unemployed. 
 
H.E. Ali bin Abdullah Al-Ayed, also, explained that SIDF’s performance during the 1st quarter  of the current fiscal year indicates an evident trend of growth of the new industrial projects vis-a-vis existing industrial plants. During the period, loans approved to the new industrial projects amounted to (29) loans with total commitments of SR 512 million, against (6) loans granted to the expansion of existing projects. Loans committed to new projects, during the 1st quarter of the current fiscal year, represented respectively 83% and 73% of the total number and value of loans approved. Investments of these new projects amounted to SR 1.1 billion or 74% of the total investments of approved projects during the period.
 
Regarding SIDF’s support for the small industrial projects segment (loan for each project amounts to SR 15 million or less) during the 1st quarter of the current fiscal year, H.E. Ali bin Abdullah Al-Ayed affirmed the continued Fund’s support for this segment. He stated that SIDF extended 19 loans to this segment commanding (54%) of the total number of approved loans. Value of these loans amounted to SR 129 million. Supported small industrial projects are expected to pump investments totaling SR 243 million. As for medium industrial projects segment (loan for each project amounts to more than SR 15 million and may reach a maximum of SR 50 million), H.E. Ali bin Abdullah Al-Ayed indicated that SIDF extended 12 loans to this segment amounting to SR 278 million representing, respectively (34%) and (40%) of the total number and value of loans approved during the 1st quarter of the fiscal year 1426/1437 H (2015G)
As for the sectorial distribution of loans, by size, during the 1st quarter of the current fiscal year, H.E. Ali bin Abdullah Al-Ayed stated that the Chemical Industries sector led all other sectors by loan commitments of SR 297 million. The following sectors are: Consumer Industries by SR 272 million, Engineering Industries by SR 84 million and lastly, Other Building Materials by SR 48 million.
 
Regarding the geographical distribution of loans approved during the 1st quarter of the fiscal year 1426/1437 H (2015G), the promising areas acquired respectively, (49%) and (41%) of the total number and value of  approved loans as well as (38%) of their total investments. These loans were distributed among Sudair, Kharj, Qassim, Al-Maddinah Al- Munawarah, Ballasmar, Raniyah, Hail, Al-Aflaj, Jizan, and Tabouk.

Overall, the Fund, since its inception up to the end of the 1st quarter of the current fiscal year 1436/1437 H (2015G), has approved a total of 3804 loans amounting to SR 118.688 million, which have assisted in the setting up of 2746 industrial projects Kingdom-wide.
H.E. Ali bin Abdullah Al-Ayed concluded by saying that he is looking forward to receiving investors’ applications for financing technology- intensive industries which contribute to augmenting the competitiveness of the national industry and transforming the national economy into a knowledge-based economy. He urged the investors to invest in the different regions of the Kingdom, particularly the promising areas and towns, in order to develop these areas and provide job opportunities for their local people. Finally, he expressed his deep indebtedness to the Custodian of the Two Holy Mosques, his faithful Crown Prince and the Second Crown Prince - May Allah save them - for their steadfast support of the Fund.​

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