Saudi fund launches $1bn pandemic stimulus plan to help industry

Saudi fund launches $1bn pandemic stimulus plan to help industry
Saudi Industrial Development Fund has launched a SR3.7 billion ($1 billion) stimulus plan to support industrial projects affected by the coronavirus pandemic. (AFP)
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Updated 17 June 2020

Saudi fund launches $1bn pandemic stimulus plan to help industry

Saudi fund launches $1bn pandemic stimulus plan to help industry
  • The fund will provide loans to finance the purchase of raw materials for pharmaceutical and medical supplies companies for up to six months

RIYADH: The Saudi Industrial Development Fund (SIDF) has launched a SR3.7 billion ($1 billion) stimulus plan to support industrial projects affected by the coronavirus pandemic.

The initiative aims to support more than 500 industrial projects by deferring and restructuring loan instalments for small, medium and large industrial enterprises.

It will also  provide lines of credit to finance up to three months of operating expenses for qualified small and medium enterprises, and issue loans for medical and pharmaceutical supplies producers, SIDF said on Tuesday.

The package will support 381 small enterprises by delaying or restructuring loan installments worth SR800 million. A further 123 medium-sized enterprises will benefit from SR800 million in financial support while 15 large enterprises will get SR1.3 billion. Some 14 medical sector enterprises with loans that fall due in 2020 will get about SR70 million in support.

SIDF Vice President of Credit and Business Adel Alsuhaimi said that the move aims to offer lines of credit to partly finance up to three months of operating expenses.

The industrial fund will also offer loans to finance the purchase of raw materials for pharmaceutical and medical supplies companies for up to six months.

Governments worldwide are being forced to intervene to shield companies in economically important sectors from financial collapse as the coronavirus pandemic brought production to a standstill.

The SIDF was established in 1974 to provide financial support to the private industrial sector.