The Saudi Industrial Development Fund (SIDF) has approved 17 loans valued at SR 2 billion to establish 11 new industrial projects and expand six existing projects with a total investment of SR 11.48 billion, its director general said yesterday.
Mining industries received the lion’s share of SIDF loans amounting to SR 900 million, followed by engineering industries (SR 355 million), chemical industries (SR 257 million), building materials (SR 226 million) and consumer industries (SR 165 million).
“We have allocated seven loans for engineering industries,” said Ali bin Abdullah Al-Ayed, adding that the fund would give SR 900 million for a mining industry in Ras Al-Khair, which involves a total investment of SR 9 billion.
The fund will give SR 57 million for a transformer project in Dammam, SR 42 million for a pressure tank factory in Dammam and SR 39 million for a new factory in Rabigh. Al-Ayed said SIDF’s board of directors has allocated SR 257 million for a petrochemical factory in Jubail that involves a total investment of SR 535 million.
“The board has decided to increase the maximum limit of loans given to industries in underdeveloped areas to SR1.2 billion per loan,” Al-Ayed said. At least 20 percent of a company’s shares should be owned by a local holding company or a foreign partner with high financial and technical resources to receive this benefit. He said the maximum loan amount for industries in major cities has been increased to SR 900 million. Industries owned by individuals in less developed areas would get a maximum loan of SR 400 million while in main cities such firms would get SR 300 million.
Industries in cities such as Qassim, Al-Ahsa, Madinah, Rabigh, Taif, Sudair and Alkharj will receive a maximum loan of not more than 60 percent of total investment, he said.