Promising Factories Initiative (Soft Loans)

Initiative Overview:

The Promising Factories Initiative is a sub-initiative Industrial Sector Support Initiative that aims to stimulate investment in National Industrial Strategy sectors by providing innovative lending and investment instruments that allow entrepreneurs with lower net worth to obtain funding and start their industrial activity.

The Initiative is implemented in two phases:
o Phase 1: Soft Loans
o Phase 2: will be announced soon

Objectives of the Initiative:

To stimulate investment in National Industrial Strategy sectors by supporting entrepreneurs and SMEs financially to establish new factories.

Targeted Market:

The initiative primarily targets two channels of investment sourcing:

Entrepreneurs who graduate from Industrial Incubators.
SMEs that are qualified by MIMR investment programs.

First phase (soft loans) Incentives:

Funding percentage: up to 50% of the project cost.
20% percent advanced disbursement of the loan amount.
The grace period reaches 24 months.
Tenor period up to 10 years.

Initiative Outputs:

Stimulate the private sector and reduce the required financing gap in the industrial sector.

Eligibility criteria:

Feasibility study along with project implementation plan

Feasibility study along with project implementation plan.
Project economically feasible according to the evaluation of SIDF.
Project contribute to increase local content.
Project qualified by partner business incubators or one of the MIMR’s investment programs.
Client to secure the remaining percentage of the project value that was not financed by the initiative.

To apply for the initiative

Last Modified Date: 12/12/2025 - 08:31 PM Saudi Arabia Time

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