Saudi Arabia is reportedly expanding the reach of its $28b Saudi Industrial Development Fund (SIDF) to allow the financing of energy, logistics and mining projects as part of broader efforts to develop the kingdom’s industries.
The changes greatly extend the purview of the Saudi Industrial Development Fund, which previously only provided financing to local manufacturing businesses, according to a report in Bloomberg.
“Under the new terms, companies will be also eligible for additional financing options, including multi-purpose term loans and acquisition financing,” SIDF said in a statement to Bloomberg. In another key shift, the fund can now provide financing to businesses outside the kingdom that have Saudi investors.
While “SIDF will remain focused on providing financing to projects inside the kingdom,” the amendments provide “some flexibility to finance projects abroad,” the fund said.
SIDF contributes to the Kingdom’s industrial development “by providing the finance and advisory services needed to support the growth and development of the local industrialization and upgrading the level of the industry performance,” the SIDF website says.
Khalid Al-Falih, who is also Minister of Energy in Saudi Arabia as well as chairman of the board of Saudi Aramco, is also chairman of the SIDF.