RIYADH: Saudi Arabia expanded the mandate of its 105 billion riyal ($28 billion, Dh102.7 billion) industrial fund to allow the financing of energy, logistics and mining projects as part of broader efforts to develop the kingdom’s industries.
The changes greatly extend the purview of the Saudi Industrial Development Fund, which previously only provided financing to local manufacturing businesses, report agencies.Under the new terms, companies will be also eligible for additional financing options, including multi-purpose term loans and acquisition financing, the fund known as SIDF said in a statement to Bloomberg on Tuesday. In another key shift, the fund can now provide financing to businesses outside the kingdom that have Saudi investors.
While “SIDF will remain focused on providing financing to projects inside the kingdom,” the amendments provide “some flexibility to finance projects abroad,” the fund said.
The industrial fund, created in the 1970s, is being revamped to take on a bigger role under Crown Prince Mohammad Bin Salman’s blueprint for life after oil, dubbed Vision 2030.