The Saudi Industrial Development Fund has approved up to 5,000 projects — representing about 40 percent of the Kingdom’s industrial base — with a total investment value nearing SR200 billion ($53.3 billion), according to Khalil Al-Nammari, executive vice president for strategic planning and business development at the fund, who spoke to Al-Eqtisadiah.
This brought the fund’s total approved investments since its establishment in the 1970s to more than SR700 billion. During the Vision 2030 period alone, the fund approved loans ranging between SR86 billion and SR90 billion, Al-Nammari said.
These loans attracted nearly SR190 billion in investments, highlighting the scale of expansion and growth in industrial lending and related sectors.
Al-Nammari stressed that the fund’s success is measured by the ability of projects to be built, operated, exported, and scaled, not only by the size of financing, pointing out that relationships with clients often extend 15 to 20 years due to the long-term nature of development loans.
On measuring development impact, Al-Nammari said economic feasibility studies, market analysis, and engineering assessments form the foundation before any loan is approved.
He added that the SIDF evaluates project performance after operations begin by monitoring financial statements, operational progress, production capacity, and sales growth, as well as export capabilities.
He added that the fund also assesses job creation and quality, all of which are indicators factored into lending decisions from the outset and monitored throughout the loan term.
As part of this effort, the fund conducts regular visits to more than 1,000 active projects in its portfolio to track construction and operational phases, assess financing needs, and provide solutions, advisory support, and academic services.
The goal is to ensure factories achieve their production targets, adhere to business plans, and enter local and global markets, contributing to industrial growth, higher exports, and greater sector contribution to gross domestic product.
Source: Arabnews