Objectives of the Saudi Industrial Development Fund

• Support and develop the industrial sector in the Kingdom by providing innovative financing solutions and incentive programs that promote sector growth and sustainability.
• Enhance the competitiveness of the national industry and improve the quality of Saudi products to meet global standards and strengthen their position in both local and international markets.
• Localize industrial value chains and reduce reliance on imports by encouraging local production and supporting strategic and promising industries.
• Increase non-oil industrial exports by supporting export-ready factories and developing their production and marketing capabilities to access new markets.
• Attract both domestic and foreign direct investment into the industrial sector by offering an attractive investment environment, financing incentives, and streamlined procedures for investors.
• Finance new industrial projects and the expansion of existing ones through soft loans and flexible financing programs that align with growth and development needs.
• Provide technical, administrative, and advisory support to industrial establishments to enhance operational efficiency, improve governance practices, and ensure sustained growth in a dynamic and competitive environment.

The Role of the Saudi Industrial Development Fund in Achieving Vision 2030

Economic Diversification

The Saudi Industrial Development Fund contributes to achieving one of the key objectives of Saudi Vision 2030 by financing non-oil industrial projects. This enhances the industrial sector’s contribution to the gross domestic product (GDP) and reduces reliance on oil revenues as the sole source of national income.

Enabling Localization and Job Creation

The Saudi Industrial Development Fund supports programs and initiatives aimed at increasing localization in the industrial sector by financing projects that create high-quality job opportunities for Saudi youth, develop national talent, and facilitate the transfer of knowledge and modern technical expertise.

Enhancing Non-Oil Exports

The Saudi Industrial Development Fund focuses on financing industrial projects with strong export potential, contributing to increasing the share of Saudi non-oil exports in regional and global markets, and strengthening the Kingdom’s position as a global logistics and industrial hub.

Enhancing Non-Oil Exports

The Saudi Industrial Development Fund focuses on financing industrial projects with strong export potential, contributing to increasing the share of Saudi non-oil exports in regional and global markets, and strengthening the Kingdom’s position as a global logistics and industrial hub.

Supporting Digital Transformation and Innovation

The Saudi Industrial Development Fund provides tailored financing solutions for digital transformation projects, automation, and Industry 4.0 technologies, enabling national factories to adopt innovation, improve operational efficiency, and compete in an advanced global industrial environment.

Stimulating Foreign Direct Investment

The Fund acts as a strategic partner in attracting foreign investors by offering attractive financing packages, facilitating procedures, and providing risk guarantees. This enhances international investors’ confidence in the industrial environment of Saudi Arabia and supports the inflow of capital and advanced technologies.

Promoting Environmental Sustainability and the Circular Economy

The Saudi Industrial Development Fund allocates part of its financing portfolio to support environmentally friendly industrial projects, energy efficiency initiatives, and carbon circular economy projects, in alignment with the “Saudi Green Initiative” and the Vision’s objectives of building a sustainable future.

Empowering SMEs and Entrepreneurs

The Fund provides accessible financing and incentive programs to support entrepreneurs and small and medium-sized enterprises (SMEs), enabling them to enter the industrial sector and transform their ideas into productive factories.

Enhancing Regional Integration and Value Chains

The Fund supports projects that strengthen industrial integration across the Kingdom’s regions and the Gulf Cooperation Council (GCC) countries by financing local and regional supply chains, contributing to building an integrated industrial ecosystem capable of competing at both regional and global levels.

Financing solutions provided by the Saudi Industrial Development Fund

1- Project Financing

The Saudi Industrial Development Fund offers the Project Financing Program as a strategic funding solution to support the establishment of new factories and the expansion of existing industrial projects in the Kingdom of Saudi Arabia, in line with its objectives to promote sustainable industrial growth.
This program targets all institutions and companies—both domestic and international—seeking to establish industrial facilities within Saudi territory, regardless of whether they are existing or new clients. It provides medium- to long-term financing, with repayment periods of up to 20 years depending on the nature of the project and the required funding amount. This enables investors to maintain strong financial flexibility in managing cash flows and achieving operational sustainability.
Additionally, the fund is committed to completing service procedures within a timeframe not exceeding four months, provided that all required documents and conditions are submitted on time.

Supporting Documents:

• Feasibility Study: The feasibility study must comprehensively cover the marketing, operational, financial, and technical aspects of the project, and it must be prepared by a reliable and accredited entity.
• Legal Documents of the Borrowing Entity: These include a valid commercial registration, the articles of incorporation and their updated annexes, audited financial statements (if available), and industrial licensing details (if applicable).
• Comprehensive Project Description: This includes a detailed explanation of the project’s products and their technical specifications, the estimated total implementation cost, and the loan amount requested to be covered by the fund.
• Proof of Financial Solvency and Collateral: The provided guarantees—excluding the borrowing entity—must cover at least the full value of the requested loan. These may include real estate, an equity portfolio, or investments in other entities, supported by the necessary documentation (commercial registration, articles of incorporation, audited financial statements for the past three years, and internal financial statements up to the application date).
• No Objection Letter: A signed no-objection letter must be submitted by the borrower, shareholders, and guarantors. For foreign owners or shareholders, a credit report issued by a licensed credit information company in their country of residence must also be provided to ensure financial transparency and credibility.

2- Working Capital Financing

The Saudi Industrial Development Fund offers the Working Capital Financing Program as a short-term funding solution designed to stimulate existing industrial projects and enhance their operational liquidity. This is achieved by covering additional operating expenses, including accounts receivable, inventory management, and accounts payable, ensuring uninterrupted operational cycles.
The program targets the fund’s existing clients who seek to strengthen their financial capabilities and operate their factories more efficiently. It is characterized by high flexibility, offering short-term financing with repayment periods of up to two years, aligned with the recurring operational needs of industrial projects.
Additionally, the fund is committed to completing service procedures within a period not exceeding one month, provided that all required documents and conditions are submitted on time.

Eligibility Criteria:

• The project must be established and actively engaged in its industrial activity.
• A good credit relationship with the fund, free from violations or delays.
• The operational period of the project shall not be less than 18 months from the actual start date of operations.
• Providing clear and comprehensive details of working capital requirements and the purpose of the funding.
• The borrower must have a credit check acceptable to the fund according to the approved creditworthiness criteria.

3_ Acquisition Funding

The Saudi Industrial Development Fund offers the Acquisition Financing Program as a medium-term funding solution designed to support strategic acquisition transactions and expand industrial activities through acquiring value-added facilities within the Kingdom of Saudi Arabia.
This program targets all institutions and companies—both domestic and international—seeking to strengthen their industrial presence by acquiring existing factories or expanding their operations, regardless of whether they are existing or new clients. It provides medium-term financing with repayment periods of up to a maximum of 7 years, giving investors sufficient financial flexibility to manage mergers and acquisitions and achieve the desired operational integration.
Additionally, the fund is committed to completing service procedures within a timeframe not exceeding four months, provided that all required documents and conditions are submitted on time.

Eligibility Criteria:

• The acquisition must deliver a clear and acceptable value addition to the Saudi Industrial Development Fund, in a way that enhances operational efficiency and supports the sustainable growth of the merged entity.
• The borrower is required to have strong financial solvency covering four times the value of the requested acquisition loan, to ensure the ability to repay and meet financial obligations throughout the financing period.
• The borrower must own 100% of the target company to ensure full control over asset management and strategic decision-making without the involvement of other partners.
• The borrower is required to have a sound financial track record, reflected in actual profitability and positive, stable cash flows over the past three years prior to submission.
• The size of the acquired entity’s assets must be less than 50% of the acquiring entity’s total assets (Size Ratio), in order to maintain the structural and financial balance of the merged entity.
• A formal Sale and Purchase Agreement must be signed in post-acquisition cases to document the transaction and ensure the legal and financial rights of all involved parties in accordance with applicable regulations.

4- Supply Chain Financing

The Saudi Industrial Development Fund offers the Supply Chain Financing Program in partnership with Saudi Awwal Bank (SAB) as an innovative short-term financing solution aimed at prepaying supplier invoices. This supports working capital needs and improves the cash flow of industrial establishments.
The program targets large, established factories in the Kingdom of Saudi Arabia that purchase raw materials and inputs from small and medium-sized enterprise suppliers. This helps strengthen industrial supply chain integration and supports the growth of the private sector.
It is structured as short-term financing with a repayment period of up to one year, aligned with operational cycles and seasonal liquidity requirements. Additionally, the fund and its banking partner are committed to completing service procedures within a timeframe ranging between 5 to 8 months, provided that all required documents and conditions are submitted on time.

Eligibility Criteria:

• It is required that the client has no overdue installments or outstanding evaluation and monitoring fees payable to the Saudi Industrial Development Fund (for existing clients), reflecting the client’s financial commitment and discipline in meeting obligations.
• The client must have a strong track record and a positive relationship with the Saudi Industrial Development Fund, free from any violations or previous administrative issues (for existing clients).
• An official credit report from SIMAH (Saudi Credit Bureau) must be submitted, confirming that there are no financial defaults or negative records that would affect the borrower’s creditworthiness.
• It is required to attach audited and certified financial statements for the last three financial years, prepared by a licensed auditor, to ensure transparency and accuracy in assessing the entity’s financial position.
• The borrower must demonstrate actual and stable profitability over the past three years as evidence of the efficiency of the operating model and the project’s ability to generate cash flows that support loan repayment.

5- Multi-Purpose Financing

The Saudi Industrial Development Fund offers the Multi-Purpose Financing Program as a medium-term, highly flexible financing solution designed to support the development of industrial operations and improve the operational performance of existing projects in the Kingdom of Saudi Arabia.
This program targets all institutions and companies—both domestic and international—seeking to enhance their operational efficiency or expand their industrial activities, regardless of whether they are existing or new clients. It is structured as medium-term financing with repayment periods of up to 5 years, providing investors with sufficient financial flexibility to implement development and improvement initiatives without short-term liquidity pressures.
Additionally, the fund is committed to completing service procedures within a timeframe not exceeding four months, provided that all required documents and conditions are submitted on time. This reflects the fund’s commitment to delivering fast and flexible financing solutions that contribute to improving the efficiency of industrial establishments and supporting their journey toward sustainable growth and operational excellence

Eligibility Criteria:

• The financing must not lead to an increase in the project’s production capacity; rather, it should focus on improving internal efficiency and enhancing the productivity of existing assets without expanding the plant’s capacity.
• The improvements should contribute to enhancing the operational value of the project by developing the technical infrastructure, improving production line efficiency, upgrading output quality, or reducing operating costs.
• The company must have sufficient financial solvency to cover the loan from the Saudi Industrial Development Fund, and the borrowing entity must have achieved net profits for at least the past two years as evidence of stable financial performance and the ability to meet its obligations.
• The proceeds of the financing must be used for clear and specific operational or development purposes that align with the program’s objectives and contribute to enhancing the project’s sustainability and competitiveness.

6- Documentary Credit with Banks

The Saudi Industrial Development Fund offers the Documentary Credit with Banks service as a strategic financing solution aimed at providing the necessary liquidity to industrial investors through the Fund’s guarantee of documentary credit financing, in close cooperation with approved commercial banks in the Kingdom of Saudi Arabia.
This service targets the Fund’s existing clients who seek to facilitate the import of raw materials, machinery, and equipment required to operate and develop their factories. It helps reduce direct financing costs and enhances the purchasing power of industrial establishments.
The service is characterized by its flexibility as a financing solution, with the Fund committed to completing the related procedures within a period not exceeding one month, provided that all supporting documents and required conditions are submitted on time.

Roles of Each Party in Opening a Documentary Credit (Letter of Credit):

• Client: Contracts with the supplier, defines the specifications of the required goods or equipment, and completes the purchasing procedures in accordance with the agreed terms.
• The Saudi Industrial Development Fund: Reviews the application and provides financing and coverage for the documentary credit in accordance with the approved terms and conditions, ensuring payment of the transaction value to the supplier on behalf of the client.
• The Bank: Opens the documentary credit and verifies the related documents such as shipping documents, insurance documents, inspection certificates, and certificates of origin to ensure that all regulatory and commercial requirements are met before completing the payment process.

Key Project Financing Programs of the Saudi Industrial Development Fund

1- Localization Program

The Saudi Industrial Development Fund launched the “Localization” program as one of its strategic initiatives aimed at supporting local content and enhancing self-sufficiency by localizing industrial supply chains within the Kingdom of Saudi Arabia.

The program operates in partnership with leading Saudi companies to encourage the use of local products and components, contributing to the development of an integrated and sustainable industrial ecosystem. It also provides attractive preferential financing to support industrial investments and assist the suppliers of these companies in improving their efficiency and competitiveness.

The “Localization” program features exceptional financing benefits, including an extended repayment period of at least 7 years and a grace period of up to 24 months, giving investors significant financial flexibility during the establishment and initial operating phases. In addition, it offers fast and streamlined evaluation procedures for projects that have a pre-existing purchase agreement.

2- Competitiveness Program

The Saudi Industrial Development Fund offers the “Competitiveness” Program as a strategic financing solution aimed at strengthening the national industrial base through the adoption of technology and digital transformation. This program helps existing factories reduce operational costs, improve energy consumption efficiency, and support the national industrial transformation journey while building local capabilities by enhancing the digital maturity of establishments.

The program includes a specialized Energy Efficiency track, which focuses on financing projects that improve energy consumption in existing factories by adopting energy-saving solutions, implementing advanced energy auditing and management systems, upgrading equipment, and supporting continuous improvement in energy performance, security, and consumption.

The “Competitiveness” program features exceptional financing advantages, including an extended repayment period of at least 7 years and a grace period of up to 24 months, providing investors with financial flexibility during both the implementation and operational phases. In addition, it offers fast and streamlined application procedures, with evaluation completed within 8 weeks for projects that do not increase production capacity by more than 20%.

3- Renewable Program

The Saudi Industrial Development Fund launched the “Renewable” Program as an ambitious strategic initiative aimed at supporting the renewable energy sector and strengthening the Kingdom’s position in this vital field. The program finances a range of projects, including the establishment and expansion of factories producing renewable energy components, independent renewable energy generation projects, and distributed generation projects, contributing to meeting the growing local and global demand for clean energy solutions.

The program offers a dedicated financing track for manufacturing renewable energy components, featuring a repayment period of up to 12 years, a grace period of up to 36 months, and financing coverage of up to 75% of the project cost. It is fully aligned with the Renewable Energy Project Development Office to ensure supply and demand requirements are properly matched.

Additionally, the program supports independent renewable energy generation projects with repayment periods of up to 20 years and a grace period of up to 36 months, providing exceptional financial flexibility for developers in this sector.

For distributed generation projects, the program provides financing of up to 75% of the project cost, with repayment periods of up to 12 years and a grace period of up to 36 months. It is available to project owners and developers across industrial, commercial, agricultural, and other sectors, reflecting the program’s comprehensiveness and its ability to support a wide range of investors.

Industrial Localization Incentive Initiative of the Saudi Industrial Development Fund

The Industrial Localization Incentive Initiative is one of the leading strategic initiatives that provides an integrated system of incentives and benefits for industrial investors, through close collaboration with entities within the industrial ecosystem and the local content and minerals sector in the Kingdom of Saudi Arabia.

The initiative acts as an umbrella framework under which multiple sub-initiatives, programs, and tailored tracks are included to support investors in the industrial sector, with the aim of creating an attractive investment environment, stimulating the inflow of high-quality investments, and fostering the growth of existing investments.

It targets a wide range of investor segments, including new industrial investments, investments in existing factories, small, medium, and micro enterprises, as well as foreign direct investments.

The initiative seeks to achieve tangible strategic outcomes, including attracting local and international suppliers, increasing operational efficiency and production capacity of industrial establishments, enhancing the competitiveness of national factories in regional and global markets, and accelerating the localization of strategic industries.

It is built around two main objectives: stimulating investment in the industrial sector by attracting high-impact strategic industries, and increasing the local content ratio by improving operational efficiency, boosting production capacity, and strengthening the competitiveness of local factories. This contributes to achieving the objectives of Saudi Vision 2030 in building a diversified and sustainable industrial economy.

Promising Factories Initiative “Soft Financing” of the Saudi Industrial Development Fund

The “Promising Factories – Soft Financing” initiative is a sub-initiative under the Industrial Localization Incentive Initiative. It introduces innovative investment and financing tools, such as soft financing, aimed at reducing personal guarantees and financial solvency requirements. This enables entrepreneurs and small and medium-sized enterprises (SMEs) to access financing and launch their industrial activities.

The initiative seeks to establish new factories by creating opportunities for entrepreneurs and SMEs in strategic industrial sectors. It targets two main segments: entrepreneurs who have graduated from industrial business incubator programs, and SMEs that have been qualified through investment programs provided by the Ministry of Industry and Mineral Resources.

By doing so, the initiative contributes to strengthening the business environment and supporting sustainable industrial growth within the Kingdom of Saudi Arabia.

Initiative Benefits:

• Financing for the establishment of new factories, with funding of up to 50% of the total project cost.
• 20% of the loan amount is disbursed as an advance payment to provide liquidity for the project.
• Grace period of up to 24 months.
• Loan tenure of up to 10 years.

Eligibility Criteria:

• A detailed feasibility study accompanied by a clear and comprehensive implementation plan for the project.
• The project must demonstrate economic viability as assessed by the Saudi Industrial Development Fund.
• The project must be qualified by partner business incubators or one of the investment programs التابعة لوزارة الصناعة والثروة المعدنية.
• The project should contribute to increasing local content and strengthening the national industrial value chain.
• The entrepreneur must secure the remaining portion of the project cost not covered by the initiative through self-investment or other investors.

Future Factories Initiative – “Competitive Accelerator Incentive Track” of the Saudi Industrial Development Fund

The “Competitive Accelerator” program is a specialized financing and incentive initiative designed to support the industrial sector. It focuses on funding automation, digitalization, and energy efficiency projects by providing direct financial support and attractive incentives for those seeking to adopt Industry 4.0 solutions and energy-saving technologies.

The program aims to achieve a strategic objective of enhancing the competitiveness of the national industrial sector by accelerating digital transformation and adopting modern technologies that improve production efficiency and reduce operating costs. It targets existing industrial project owners in the Kingdom of Saudi Arabia, enabling them to upgrade their technical infrastructure and improve operational performance in line with the objectives of Saudi Vision 2030 to build a smart and sustainable industrial ecosystem capable of competing both locally and globally.

Initiative Benefits:

• Grace period of up to 24 months.
• Repayment period of at least 7 years.
• Fast-track review of applications within a period not exceeding 8 weeks.
• Financial incentives (subject to terms and conditions).

Eligibility Criteria:

• The client must apply through the accelerator platform of the Ministry or its representative to request the incentive.
• The client must obtain a Competitiveness loan from the Saudi Industrial Development Fund.
• The project must be existing and already operational before applying to the program.
• The factory must hold all required licenses to carry out industrial activities.
• The use of commercially proven and globally recognized technologies is required for automation, digitalization, or energy efficiency purposes.
• The project must be economically viable and capable of generating attractive investment returns.
• A comprehensive feasibility study must be submitted, including the full scope of the project as an indicator of the solutions used and their expected impact on efficiency and productivity.
• The project must be fully implemented within the initiative’s duration and adhere to the approved timeline.

Other funding sources