16/08/2015
4.2 billion riyals to finance 69 industrial project
The Saudi Industrial Development Fund has approved 69 loans during the first half of the current fiscal year 2015, to help finance 60 new industrial project and expand 9 established projects. Abdulkarim bin Ibrahim alnafae has asserted that the total of the new loans supplied by the fun is 4.2 billion, while the total of the projects that has benefited of the loans has reached 13.14 billion riyals. The number of granted loans has increased by 10% and the value of those loans had increased by 64%. The total of the investments is 173% more than the first half of the last fiscal year 1435/1436. He has expected that 4373 direct job opportunity would become available through those projects. This is considered a positive indicator that investors trust the industrial sector in Saudi and they have positive expectations for it.
Alnafae pointed that the Saudi Industrial Development Fund continues to support the industrial development in all Saudi’s areas. He mentioned that the number and value of the approved loans for the area during the first half of the year, which are 34 loan, with a total value of 1.325 million riyal, which is 49% of the number of loans in general and 32% of its value. That percentage used to be 14% in the number of loans in general and 15% of the value by the end of 1432, which was before applying the special rules of rising the funding percentage to 75% of the project’s cost instead of 50, and extending the payment plan to 20 years instead of 15.
He asserted that the current performance indicates a clear development plan, compared to the projects of expanding current factories. The number of new industrial projects is 60 compared to 9 loan to expand existing projects. Loans for new projects is about 87% of the total of loans that were granted by the fund during the first half of the current year. Those loans are estimated at 4 billion riayls in total, thus, they are considered as 95% of the total of the granted loans. Meanwhile, the investments has reached 12.7 billion riyal, which is approximated as 97% of the total of the investments of the approved projects in the same period.
As for small industrial projects, which require loans of 15 million or less, the fund continues to support them. 39 loan for this category has been approved during the first half of the current fiscal year. Thus, those loans take up 57% of the granted loans, with a total of 282 million riyals. Those projects are expected to provide investments that are estimated at 547 million riyals. Alnafae mentioned that that the sector of consumable goods has been in the lead with loans valued at 2.089 million riyal, followed by the chemical industries with a value of 1.013 million, then the other industries at 666 million, followed by the constructions material industries sector at 287 million, then the engineering industries with 143 million.
The number of loans that has been granted by The Saudi Industrial Development Fund since it was established until the end of the first half of the current fiscal year has reached 3838, with the total value of 122.184 million riyal. Those funds were provided for 2777 different industrial project all over Saudi Arabia. Alnafae concluded that the fund looks forward to receiving funding requests for industries that has a high technical content, which will add to the level of competitiveness of the national industries and will support our national economy and turn to a knowledge based economy. He encourages investors to invest in the different cities of Saudi, especially the new developing areas.
