JEDDAH: Saudi Arabia's public lending organizations have given more than SR402 billion in loans to Saudi citizens since their inception to carry out industrial, agricultural and real estate projects in various parts of the country during the past several years.
The Real Estate Development Fund, whose capital was increased from SR250 million to SR95 billion, has given 571,000 loans worth SR153 billion to establish more than 685,000 housing units, a report carried by the Saudi Press Agency said. The fund's services now cover 3,976 cities and towns across the country.
The Industrial Development Fund, which was established in 1394H with a capital of SR500 million, has played an important role in the Kingdom's industrial development, the report said, adding that the fund now enjoys a capital of SR30 billion. It has contributed to the establishment and expansion of 1,779 industrial projects.
The Agricultural Development Fund, which was set up in 1382H has been giving loans to Saudi farmers to carry out various agricultural projects. During the past years, it gave 433,000 loans worth SR41.7 billion. It also provided financial assistance valued at SR13.1 billion for various agricultural activities until 2009.
The Saudi Credit Bank was established in 1391 to provide soft loans for marriage, repair houses and finance small and medium enterprises (SMEs). Since its inception until last year, the bank has given 1.1 million loans valued at more than SR26.5 billion.
The Public Investment Fund, which was established in 1391, has been playing a huge role in financing mega projects in various parts of the Kingdom. It has given SR86.8 billion in loans to national companies. The government also gave 513 loans worth SR6.6 billion to establish hotels, hospitals and tourist resorts.
On Rajab 17, 1426, Custodian of the Two Holy Mosques King Abdullah allocated SR25 billion to beef up some of the lending organizations from surplus budget, the report said.
The king gave SR9 billion to the Real Estate Fund while the Credit Bank received SR3 billion from the budget surplus. The Industrial Development Fund received SR7 billion from the royal bonanza, raising its capital from SR13 billion to SR20 billion.
The state-owned Public Investment Fund also received SR20 billion from the government to strengthen its financial position. The government decided to give SR25 billion more to the real estate fund during a span of five years beginning 2008.
The Finance Ministry was instructed by the government to deposit SR10 billion in the Saudi Credit Bank in order to help the organization provide more soft loans to people of limited income.
By P.K. ABDUL GHAFOUR
© Arab News 2010
