The saudi industrial development fund is a vital tool for promoting economic growth in Saudi Arabia. The fund aims to enhance industrial development by providing necessary financing for new industrial projects and expanding existing ones. The industrial development fund offers a wide range of financial services, including long-term loans, financial consultations, and strategic planning, all with the goal of encouraging economic diversification and reducing dependence on oil.
Objectives and Services of the saudi industrial development fund
The Saudi Industrial Development Fund targets financing projects across various sectors, such as manufacturing, petrochemicals, metals, food products, and renewable energy. Through this, the fund plays a crucial role in achieving the goals of Saudi Vision 2030. This article explores the benefits of the industrial development fund, the requirements for obtaining financing, and the types of projects supported by the Saudi Industrial Development Fund.
What is the saudi industrial development fund ?
The Saudi Industrial Development Fund is a governmental institution that was initially part of the Ministry of Finance, similar to the Real Estate Development Fund. However, unlike the latter, the industrial development fund focuses on supporting the industrial and mineral resources sectors rather than real estate. Over time, the fund’s responsibilities were transferred to other ministries, such as the Ministry of Commerce, Industry, and Energy, until the Ministry of Industry and Mineral Resources became the sole authority overseeing the fund’s activities. The fund finances Sharia-compliant and low-cost industrial projects.
History of the Saudi Industrial Development Fund
The history of the saudi industrial development fund dates back to 1974 (1394 AH), when it was established as a government financial institution dedicated to implementing industrial reform and supporting private sector industrial development. At its inception, the government allocated a capital of approximately 500 million SAR to support projects. This amount was gradually increased until it reached 20 billion SAR in 1426 AH. The fund successfully collected repaid loan installments and reinvested them in major industrial projects. Due to the efficient recycling of funds, the capital was doubled in 2011 to 40 billion SAR. By 2019, the fund’s resources were further bolstered to 105 billion SAR.
Benefits of the saudi industrial development fund
The saudi industrial development fund aims to achieve several goals and development programs designed to provide both advisory and financial support to entrepreneurs. Some of the key benefits of the fund include:
- Enhancing the success rates of industrial projects and ensuring the proper investment of state funds.
- Increasing returns from industrial investments and promoting the growth of local projects within the Kingdom.
- Prioritizing national products over imported goods and relying on non-oil exports in trade relations.
- Creating job opportunities for a large number of young people and promoting national employment.
- Localizing industrial technologies by attracting foreign investors and encouraging them to invest in national projects.
- Organizing training courses and workshops to develop one of the fund’s projects.
- Preparing implementation phases for industrial projects, conducting feasibility studies, and offering appropriate advice to clients.
- Providing all types of financial, legal, marketing, and engineering guidance.
- Offering personal financing to beneficiaries without requiring any financial evidence or guarantees for repayment.
Conditions for Industrial Development Fund Loans
Several conditions must be met for a project to be approved for financing by the Saudi Industrial Development Fund:
- The project owner or one of the partners must hold Saudi citizenship.
- The project must generate economic benefits that contribute to the state’s industrial investment.
- The project should fall within the activities supported by the industrial development fund, such as industry and mining.
- Projects that are not supported, like paper bags and powdered milk, are excluded from financing.
What Projects Are Supported by thesaudi industrial development fund ?
The Saudi Industrial Development Fund supports the financing of various projects related to the following sectors:
- Industry
- Energy
- Mining and Mineral Resources
- Logistics Services
How to Register with the saudi industrial development fund
The Saudi Industrial Development Fund allows users to log in to the platform and apply for funding by following these steps:
- Visit the Saudi Industrial Development Fund platform via this direct link: www.sidf.gov.sa.
- Navigate to the top menu and select the “Investor Services” tab.
- From the dropdown menu, choose the “Products” section and click on “Apply for Financing.”
- Scroll down the page and click the “Apply Now” button.
- Log in using your ID number or residency number.
- Submit the preliminary financing request.
- Provide information about the sector, license details, company information, product details, ownership, and net worth.
- If the applicant is a foreigner, they must submit their bank account information.
- Submit the application and wait for the relationship manager to review and evaluate the project’s feasibility before approval and contract signing.
Steps to Obtain a No-Borrowing Certificate
The Saudi Industrial Development Fund provides a No-Borrowing Certificate online by following these steps:
- Access the fund’s platform and select the “Investor Services” tab.
- Click on “Electronic Services” from the dropdown menu.
- Choose the “No-Borrowing Certificate” service and click on it.
- Log in using your ID number or residency number.
- Enter the required information and upload the necessary documents.
- Choose the method of receiving the certificate.
Key PrograKey Programs of the saudi industrial development fund
The Saudi Industrial Development Fund offers several programs that support its goals. Some of the most important programs include:
- Nokhab Program: The fund employs its expertise and efforts to develop young talents through specialized training programs in collaboration with reputable educational institutions and universities. This program offers intensive training that prepares participants for the job market, ultimately producing graduates who excel in fields like engineering, credit studies, and market research.
- Cooperative Training Program: This program offers cooperative training for male and female students enrolled in Saudi universities. The training, which lasts from 6 to 28 weeks, focuses on practical rather than theoretical aspects and takes place within the premises of the Saudi Industrial Development Fund. Upon completion, trainees are well-prepared to enter the real work environment.
- Employment Program: This program aims to recruit employees for the Saudi Industrial Development Fund by selecting young national talents with the skills, competencies, and ambition to work effectively. Employees are chosen after passing tests to ensure they meet the highest standards of transparency.
- Energy Efficiency Program: This program supports manufacturing to enhance energy efficiency and reduce costs. It targets clients with outstanding credit standing, whose projects are listed on the financial statements for the last three years. The Energy Efficiency Program also requires the submission of tangible results on energy consumption reduction and commercial trials of these technologies, along with the project feasibility study and expected financing amount.
- Kafalah Program: This initiative aims to provide financial and advisory support to small and medium-sized enterprises (SMEs), helping them expand their industrial and commercial activities. The program also offers financial guarantees to make it easier for personal finance institutions to grant loans to these establishments, thereby aiding in the completion of projects and the achievement of their investment goals. As a result, this initiative is crucial in developing small and medium-sized industrial sectors, increasing local production returns, and employing many young people.
How to Contact the Saudi industrial development fund
Here are the key channels to contact the Saudi Industrial Development Fund‘s customer support:
- Phone Number: 8001160004
- Email: info@sidf.gov.sa
- Website: Visit www.sidf.gov.sa
- Facebook Platform: Access here
- X Platform (formerly Twitter): Access here
Frequently Asked Questions about the Saudi Industrial Development Fund
What is the address of the Saudi Industrial Development Fund?
- The address is King Abdullah Financial District – Unit No. 2 – Al Aqiq District – Riyadh.
Does the Saudi Industrial Development Fund charge any fees?
- There are no administrative fees for the fund’s transactions, and monthly installments are paid over a period of up to four years.
Who is the director of the Saudi Industrial Development Fund?
- Prince Sultan bin Khalid Al Saud has been serving as the Executive Director of the fund since 2023.
Is the Saudi Industrial Development Fund a government institution?
- Yes, it is a governmental institution aimed at supporting private sectors and entrepreneurs in small and medium enterprises (SMEs).
Does the industrial development fund loan require a guarantor?
- Foreign investors do not need a guarantor to meet the loan requirements, but they must have a Saudi partner in the project.
In conclusion, we have provided all the essential information about the Saudi Industrial Development Fund, including how to apply for a loan, the conditions for approval, the main programs it offers, and the key industries it finances. If you meet the criteria, prepare your documents, get in touch with the fund, and start developing your industrial venture.
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