The Cabinet decision that offers such investors loans worth 75 percent of a project cost from the Saudi Industrial Development Fund (SIDF) would contribute to the Kingdom’s balanced development, said Tawfig Alrabiah, director general of the authority.“All investors in underdeveloped regions will benefit from the decision. It will also increase demand for industrial cities, create a conducive investment atmosphere and help achieve sustainable development, which is one of Modon’s strategic goals,” he said.Alrabiah said the decision would not only strengthen the Kingdom’s industrial sector but also create new job opportunities for Saudi graduates. “Balanced growth of regions will lessen the migration of people from underdeveloped regions to major cities.”According to the newly altered SIDF law, investors in underdeveloped areas would be given a grace period of 20 years to pay back the loans. “SIDF will give loans of up to 50 percent of the finance required for the project or for its expansion. It can raise this to 75 percent for less developed regions and cities,” said Paragraph 6 of the altered Article 4 of the law.“This is a very important decision as it will help underdeveloped regions attract more investment and expansion of existing industries there,” Alrabiah said, adding that Modon would provide land, logistical services and other facilities to investors.In a similar statement, acting SIDF Director General Ali Al-Ayed said the Cabinet decision would encourage Saudi and foreign investors to channel their investments to the Kingdom’s underdeveloped regions in order to benefit from the new financial incentives.Al-Ayed referred to the various incentives offered by the government to industrial investors in the Kingdom, including infrastructure facilities in the industrial cities, adequate supply of electricity and water, communication facilities and income tax concessions.“SIDF will continue to channel its funds to underdeveloped areas and cities to achieve their development and bring about comprehensive growth all over the country,” he said. Al-Ayed called upon investors to make use of the new incentives and present loan applications after conducting feasibility studies.Meanwhile, Abdullah Al-Mubti, chairman of the Council of Saudi Chambers, emphasized the need for linking the new incentives with employment of Saudis. “The new industries and industrial cities should give priority to training and employing Saudis,” he added.
