SIDF News

"The Saudi Industrial Development Fund (SIDF) announced the possibility of benefiting from its financing incentives through ""soft loans"" within the Promising Factories Initiative and ""Tanafusiya Accelerator Track"", as part of the ""Industrial Sector Support Initiative"" (ISSI), announced by H.E. the Minister of Industry and Mineral Resources and Chairman of SIDF, Mr. Bandar bin Ibrahim Alkhorayef, at the fourth edition of the ""Private Sector Enablement Event"" in December last year.

The ""soft loans"" aim to develop innovative investment and financing instruments without requiring personal guarantees that will allow entrepreneurs and SMEs to obtain funding, in addition to advantages that include a funding percentage up to 50% of the project cost, a tenor period up to 10 years, a grace period up to 24 months, and a 20% disbursement of the loan amount as an advance payment.

The ""Tanafusiya Accelerator Track"", which is one of the ""Future Factories"" initiative tracks, aims to finance automation and digitization projects and raise energy efficiency by providing financial support and incentives to applicants for SIDF's funding within the ""Tanafusiya"" program, after they meet the requirements of the program, in order to adopt industry 4.0 and energy efficiency solutions, which will contribute to improving the competitiveness of the industrial sector. This track includes incentive benefits such as financing up to 75%, a grace period up to 24 months, and a longer tenor with a minimum of 7 years, in addition to a faster turnaround time of 8 weeks for applications.

Investors wishing to benefit from SIDF's incentives within the ISSI can apply electronically through the ISSI page on the Ministry of Industry and Mineral Resources website. ISSI includes several sub-initiatives and programs to support industrial investment in the Kingdom in cooperation between different entities within the industrial ecosystem, mineral resources, and the Local Content and Government Procurement Authority."