Tanafusiya Program is a government funding program aimed at improving energy efficiency and creating a roadmap towards activating Industry 4.0. It seeks to build local capacities for individuals and companies to increase the competitiveness of local products in the Kingdom of Saudi Arabia through two initiatives: Energy Efficiency and Industrial Digital Transformation.
The program was launched in 2019 and is one of the programs affiliated with the Saudi Industrial Development Fund to develop the National Industrial Development and Logistics Program, which is a part of Saudi Vision 2030.
Objectives
Tanafusiya Program has launched the Energy Efficiency Initiative to achieve several key objectives, mainly improving energy efficiency, reducing operating costs for industrial facilities by enabling them to access energy-saving technologies, and enhancing productivity by utilizing the latest technologies.
Features
The program offers several advantages to investors, including a repayment period of up to seven years, a grace period of up to twenty-four months, faster financing procedures within eight weeks, and connections to specialized consulting services.
Enrollment requirements
To enroll in the Tanafusiya Program, applicants must meet several conditions, including having a good credit standing, the project must already be brownfield, providing financial statements for at least three years, demonstrating tangible results in reducing energy consumption, and providing a feasibility study.
The application process for the Tanafusiya Program involves several stages. It starts with registration by applying for a regular loan to qualify for the program, followed by an initial assessment to determine the project's eligibility based on the provided information. Next, the project's feasibility is evaluated, and if it meets the criteria, the contract is signed and formally registered.
In 2019, the program provided four financing loans. Two of these loans, totaling SAR69.4 million, were aimed at improving energy efficiency and reducing operating costs for industrial facilities. The other two loans, amounting to SAR23 million, supported the existing manufacturing base to enhance productivity through the adoption of technology and digitization.
The program continued to implement its activities and achieve its goals, with the number of projects in 2021 reaching three projects valued at SAR328 million to improve factory efficiency and support automation to enhance productivity and competitiveness. From the program's launch in 2019 until 2021, the total number of loans reached nine, amounting to SAR429 million.
In 2022, the Tanafusiya Program funded four projects worth SAR216.6 million. From the program's launch in 2019 until 2022, the total number of loans reached ten, amounting to SAR645.6 million.
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