Saudi Arabia spent record $4.5bln on industrial support last year

RIYADH — The Saudi Industrial Development Fund (SIDF), Saudi Arabia’s main financial enabler for its industrial transformation, has approved 212 loans that amounted to $4.5 billion in 2020 for 201 companies in the fields of industry, mining, energy, and logistic services.

The approved loans covered different tiers, out of which 84 percent of total loans were dedicated to small and medium-sized enterprises (SMEs), ensuring the fund’s strong continuous support for the key contributors of the economic growth in Saudi Arabia.

At the beginning of the COVID-19 outbreak, SIDF proactively supported small, medium, and large companies and offered financial initiatives tailored to their specific needs during the difficult times.

The initiatives SIDF offered, which were part of a wider package of governmental support, resulted in three urgent financial aid that exceeded $1.3 billion; the aid was in the form of restructuring installments of 546 loans due in 2020, amounting to $1 billion.

The financial liquidity of the companies was augmented by credit instruments to finance the operating expenses of the companies, especially the ones impacted by the lockdown, out of which 86 companies have benefited from the initiative for a total amount of $127 million.

Finally, launching an accelerated working capital loan amounting to $172 million directed to finance the raw material requirements of the companies involved in the medical sector to help in boosting the local medical content and the Kingdom’s pharmaceutical security.

SIDF’s 2021 strategy aims to stimulate investments in priority economic sectors, improve client experience, enhance the efficiency and effectiveness of its operations, strengthen governance, and risk management, and focus on human capital development. The strategy will position SDIF in driving its support to realize the goals of Saudi Vision 2030. — SG