Saudi Gazette report
RIYADH — The Development Ecosystem in Saudi Arabia, which includes the National Development Fund (NDF) and its supervised development funds and banks has approved more than SR30 billion in financing and support to boost the Kingdom’s economy in the first quarter of 2023.
The Development Ecosystem has continued its development work during the Q1 of the current year, and achieved several agreements and achievements that aim in meeting the economic, social, cultural goals of Saudi Arabia’s Vision 2030.
This would also maximize the developmental impact, and financing the private sector and the competencies in all the fields.
The value of the approved financing and support amounts exceeded SR30 billion for the Q1 of 2023, after the Development Ecosystem’s achievements during the past quarter included the signing of strategic cooperation agreements, as well as financing beneficiaries from various sectors of the economy and segments of society.
According to the quarterly report issued by the Media Center of NDF, the Saudi Industrial Development Fund (SIDF) has approved financing exceeding SR875 million for 24 industrial establishments.
Moreover, SIDF has signed an agreement with the Small and Medium Enterprises General Authority (Monsha’at) regarding providing a program under the name of “How to build your industrial project”, which aims qualify the small and medium business owners to enter the industrial sector.
It also aims in building knowledge, developing, and motivating Saudi men and women interested in the industrial sector.
The SIDF has also supported more than 100 beneficiaries through the industrial fund’s academic and advisory programs.
As for the tourism sector, the Tourism Development Fund (TDF) has approved financings over SR260 million for 11 tourism establishments.
It has also served 57 beneficiaries through the pre-financing, counseling and logistical support programs.
During the Q1 of 2023, TDF have sponsored Foras Forum and Biban 23 Forum as the enabling partner for both of the events, with the aim of raising the awareness of the fund’s services, and encouraging attracting the new investments.
In order to attract private sector investors, TDF have signed Memorandums of Understating (MoUs) with many of local and international companies.
It included the signing of a financing agreement to establish Jeddah Cove project, as well as the signing of a MoU to establish and develop a tourist resort on the Half Moon Bay in the eastern region (Al-Sharqiyah), which will be operated by a leading international company in the field of hotel and hospitality.
Regarding cultural projects, the Cultural Development Fund (CDF) has provided support exceeding SR15 million, and issued guarantees amounted SR16 million.
This is in addition to launching, in the Q1, a financing program for the film sector with a budget amounted to SR879 million, as one of Ignite initiative programs.
CDF’s program aims to provide financing and investment solutions to stimulate an active and sustainable film sector through providing financing packages that are specialized in the development, production and distribution of feature films and series.
It also. in addition, seeks to empower investors in the film sector. The fund has sponsored several initiatives to support authors, artists, and cultural content makers.
In another sector, the Human Resources Development Fund (HRDF) has provided services, through its diverse programs, in terms of empowering, guidance and training to more than 836,000 individuals, and 73,000 establishments with a budget exceeding SR2.2 billion.
The fund contributed in employing more than 96,000 individuals.
The HRDF has launched its strategy and its new identity under the slogan of “Empowerment and Partnerships” which focuses on stimulating the contribution of the private sector in the localization process.
The strategy enhances the partnership with all the relevant authorities in training, employing and empowering the Saudi cadres, in addition to increasing its competitiveness and efficiency in labor market.
It is noteworthy that the financing provided by the Small and Medium Enterprises Bank has exceeded SR1.10 billion.
The bank, through this financing provided via the financing portal and the indirect lending initiative, has helped a number of enterprises who benefited from the financing. The number is 301 SMEs.
The bank has also signed a number of agreements and MoUs to enhance its work and to support the business environment in Saudi Arabia.
The bank, during the Q1, has launched the “Financing in Two Days” initiative, in cooperation with several commercial banks that provide direct financing to SMEs.
The Social Development Bank (SDB) has provided, during the Q1 of 2023, financings to about 9,000 individuals, with a value amounting to SR454 million, and to about 25,000 beneficiaries in freelancing with a value amounting to SR1.5 billion.
Three financings were approved to about 3,000 SMEs with a value of about SR1.1 billion.
In order to stimulate the games and Esports in Saudi Arabia, the fund has approved financings with about SR14.2 million, to become the first approved financings in this promising sector.
The fund has also signed several agreements and MoUs with the private sector during the financial sector conference, which was held on March 15 and 16.
As for the Real Estate Development Fund (REDF), it has enabled more than 21,000 beneficiaries to sign their financing contract to own housing during the Q1 of 2023, within various financing and housing options of the housing support programs.
The total financing amounts for subsidized loans during the same period amounted to more than SR13.7 billion, while the total amount deposited in the accounts of “sakani” beneficiaries amounted to more than SR2.7 billion.
This comes within the support of improving the affordability of housing costs to achieve the goals of the housing program, one of Saudi Arabia’s Vision 2023, which aims to open opportunities for Saudi families to own adequate housing.
The real estate advisor service of REDF has registered about 53,000 new beneficiaries during the Q1 of 2023, while it has issued more than 36,000 financing and housing recommendations.
The Agricultural Development Fund has provided financings exceeding SR2.6 billion to more than 2,086 individuals, and 21 establishments during the first quarter of the current year.
The financed sectors have varied between various development loans for small farmers and breeders in several regions throughout Saudi Arabia.
Financing investment were in poultry sector projects, greenhouse projects, fish production in inland waters, dates production and more.
The fund also approved financing to construct silos for storing grains in three locations in Saudi Arabia, in addition to financing the import of agricultural products targeted in the food security strategy.
The report indicated that the Saudi Export-Import Bank is working to empower the non-oil exports to enhance its access to global markets by covering financing gaps and reducing export risks.
The bank has provided credit facilities to support Saudi non-oil exports with a total value of about SR4.26 billion during the Q1 of 2023, of which the share of the insurance products amounted to SR2.3 billion, while the share of financing products amounted to about SR1.96 billion.
Saudi Arabia, through the Saudi Fund for Development (SFD), provided $5 billion in the Central Bank of Turkey, which came within the directives of Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed Bin Salman.
The SFD has also provided financing to support oil derivatives in Pakistan with a value of $1 billion.
Moreover, SFD has also signed an agreement of $80 million, to finance the expansion of the University of the West Indies at Five Islands (UWI) in Antigua and Barbuda, becoming the 85th country worldwide to receive funding from SFD.
The SFD has also signed a MoU for a development project to support the infrastructure of the Special Economic Zone in Ad Dhahirah, Oman.
This aims to open horizons for cooperation through establishing an economic zone that contributes in enhancing economic growth and increasing the trade exchange.
During the Q1 of 2023, Saudi Arabia has announced during the Fifth United Nations Conference on the Least Developed Countries held in Doha, to allocate $800 million through SFD to finance the development projects in LDCs.
This comes within Saudi Arabia’s pioneering and active role in contributing to enhance the development in the most vulnerable regions of the world.
