The Saudi Fund for Development (SFD) is a government institution dedicated to providing development support through concessional loans to finance development projects in developing countries. Its goal is to contribute to economic and social growth in those countries, helping them overcome challenges they might face and contributing to improving living standards. Over five decades since its establishment, the fund has financed about eight hundred development projects and programs across various key sectors in one hundred developing countries, with a total value exceeding USD20 billion.
Establishment of the Saudi Fund for Development
The Saudi Fund for Development was established by a Royal Decree issued on September 1, 1974, and it began operations on March 1, 1975.
The fund started its activities with an initial capital of SAR10 billion provided by the Kingdom’s government. This capital was subsequently increased in three stages to reach SAR31 billion.
The fund serves as the Kingdom’s development arm in international development, operating by providing concessional development loans to developing countries, in addition to managing grants provided by the Kingdom’s government to support the least developed and poorest countries through financing development projects and programs.
Objectives of the Saudi Fund for Development
The Saudi Fund for Development aims to finance development projects in developing countries by granting loans to those countries, along with providing technical assistance grants to help finance studies and institutional support.
Administration and regulation of the Saudi Fund for Development
The Saudi Fund for Development is a public institution with an independent legal and financial personality. It has a board of directors composed of ten members, and its CEO exercises executive authority and is responsible for implementing the board’s decisions.
Contributions of the Saudi Fund for Development
From 1974 to 2024, the Saudi Fund for Development financed about eight hundred development projects and programs in more than one hundred developing countries, with a total value exceeding USD20 billion, covering various vital sectors such as education, health, water, energy, agriculture, transportation, and others.
The fund’s contributions extended across multiple continents. In Africa, it financed 433 projects with a total value of about USD11.5 billion. Among these projects was the Metolong Dam in the Kingdom of Lesotho, as well as King Faisal Hospital in the Republic of Rwanda, which facilitated the country’s first kidney transplant.
In Asia, the total funding provided by the fund reached about USD7.8 billion through 271 development projects, including Mohmand Dam Hydropower project in Pakistan. In Latin America and the Caribbean, the fund financed twenty-one development projects with a total value of about USD951 million. Among these projects was the rehabilitation and completion of the water, sewerage, and stormwater drainage systems in central and western Havana in Cuba.
In Eastern Europe, the fund supported fourteen development projects with cumulative funding of about USD303 million. Among these projects was the rehabilitation of infrastructure in Bosnia and Herzegovina, where the fund provided USD73.8 million to rebuild vital roads and bridges, improve transportation, and enhance regional economic activities in the area.
Services of the Saudi Fund for Development
The Saudi Fund for Development provides loans to developing countries to deliver several services: developing basic infrastructure by expanding transportation and communication networks, contributing to human resource development, supporting health sectors to protect against epidemics, providing energy services for all, ensuring food and water security, preserving the environment and public health, offering suitable housing for low-income groups, and contributing to the development of mining and industrial activities.
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