Saudi Industrial Development Fund

Saudi Industrial Development Fund, also known as the Industrial Fund, is a Saudi government fund responsible for supporting and financing industrial projects and facilities in Saudi Arabia to become a leading industrial power and an international logistics platform by enabling the establishment of new factories and developing the list through medium and long-term loans.

Saudi Industrial Development Fund was established by a Royal Decree in 1974, with a capital of about SAR500 Mn. Its capital multiplied several times, reaching SAR105 Bn at the beginning of 2019, equivalent to about 210 times its initial capital. Industrial Fund's headquarters is located in Riyadh. It has its legal personality and administrative and financial independence. It has several departments that regulate its work and is administratively linked to the Minister of Industry and Mineral Resources, who chairs its board of directors.

The primary mission of the Saudi Industrial Development Fund is based on providing financial and advisory support to entities seeking funding, promoting local products, increasing localization in the industrial sector, investing in raw materials locally, attracting foreign investments to create job opportunities for the Saudi workforce, and raising awareness about factory safety and fostering an environmental consciousness. The Fund aims to enhance the competitiveness of the industrial ecosystem and improve investment attractiveness by offering financial and non-financial products and services. It also has a social responsibility, which includes providing training courses, employee qualification, and facilitating enrollment in the Fund Academy programs in collaboration with international vocational training centers and colleges.

Industrial Fund provides financial and advisory support and offers innovative solutions for the growth and development of the local industry, aiming to achieve its objectives, including enhancing the added value to the local economy, supporting local products, boosting non-oil exports, fostering integration between the industrial sector and other sectors, increasing the participation of Saudi competencies in the industrial sector, optimizing the use of local raw materials, attracting foreign capital, transferring and localizing technology, promoting industrial safety culture, and mitigating the risks of industrial facilities.

Saudi Industrial Development Fund offers a range of online services, e.g., requesting financial products such as multi-purpose financing, acquisition financing, working capital financing, and documentary credits with the participation of seven local banks.

In 2020, the Saudi Industrial Development Fund approved 212 loans amounting to SAR17.6 Bn, distributed across sectors in the National Industry Development Program, logistics services for projects in the industry, energy, logistics services, and the mining sector.

Saudi Industrial Development Fund provides several financing programs to support the industrial sector including Afaq Program to support SMEs and factories, a competitive program that aims to build the local capabilities of individuals and companies, Tawteen Program, which supports and funds companies when replaced with imported products and spare parts with local products. In addition, Mutajadeda Program, which contributes to the development of the renewable energy sector locally, and Nokhab Programs, which consist of three specialized training programs to develop national cadres in the Kingdom of Saudi Arabia, in addition to Land and Loan programs.