JEDDAH, 30 November — The various development funds in the government sector have extended loans of more than SR147.32 billion ($39 billion) in the past six months, according to a recent report of the Saudi Arabian Monetary Agency. With SR69.2 billion ($18.5 billion) the Real Estate Development Fund tops the list of creditors providing 46.9 percent of the total sum of loans in the period. The loans of the General Investment Fund came next with SR21.14 billion ($5.6 billion) which is 14.5 percent of the total credits. The Industrial Development Fund with SR9.99 billion ($2.6 billion) occupied the third position which is 6.7 percent of the total credit while the Agricultural Bank accounted for 5.4 percent of the total loans with SR8.05 billion ($2.1 billion). The Saudi Credit Bank which provided SR774 million ($206.4 million) came at the bottom of the list with 0.5 percent.
The SAMA studies also pointed out that over the period from 1995 to 2000 the Real Estate Development Fund has been providing the largest share of loans with SR420.4 billion ($112.1 billion) out of the total loans worth SR897.5 billion ($239.3 billion) extended by the governmental credit agencies in the Kingdom over that period. In the same period the General Investment Fund provided loans worth SR164.3 billion ($43.81 billion) and the Industrial Development Fund gave loans for SR55.7 billion ($14.85 billion), while the Agricultural Bank’s share was SR47.8 billion ($ 12.74 billion) and the Saudi Credit Bank’s SR4.4 billion ($1.7 billion). The report also showed that the highest amounts of loans were distributed in 1995 when the total came to SR151.7 billion ($40.5 billion).
The Kingdom instituted the credit agencies in the early sixties to extend interest-free loans to Saudi individuals, establishments and companies with the aim of expediting the process of economic progress in the country. The allocations for these loans claim a considerable share of the Kingdom budget every year. In the current budget SR6 billion ($1.6 billion) has been allocated for the credit agencies.
