Financial support

A+ A A-

Export credit financing, guarantee, insurance; Energy and utilities subsidies; Financial incentives for R&D

1.​Credit financing, guarantee and insurance

​Export credit financing, guarantees and insurance by the Saudi Export Program

  • Coverage up to 90% of credit value

Main conditions

  • Exports with Saudi origin
  • Min %25 local of value added (crude oil is excluded)
  • Min transaction value funded 100k SR
  • Operational risk and credit worthiness to be accepted
  • Guarantees vary depending on risks associated

Responsible entity

  • Saudi Fund for Development


2. Energy and utilities

Subsidized tariffs for power, water, natural gas, ethane, diesel and land


Main conditions

  • Power at $ 0.048 per kWh for industrial sector
  • Water at $ 0.5 - $1.35 per cubic meter (based on volume)
  • Natural gas at $ 1.25 per MMBTU
  • Ethane at $ 1.75 per MMBTU
  • Diesel at $ 14/ barrel
  • Land for lease starting from $ 0.26 per sqm

Responsible entity

  • Saudi Electricity Company
  • National Water Company
  • Saudi Aramco
  • Saudi Industrial Property Authority

3. Financial incentive for R&D projects

Investment in selected local and international R&D projects with potential to boost country's economic growth and self-reliance


Main conditions

Investment with following characteristics

  • –Enable technology transfer to Saudi Arabia

    –Diversify Saudi Arabia economy

    –Create high skilled jobs

Financed amount uncapped


Responsible entity

  • King Abdulaziz City for Science and Technology



Local loan programs

1. ​Loan program for industrial projects

​Finance up to 50% of project costs in major cities, and 75% in promising cities

  • Repayment periods of up to 15 years
  • 2-year grace period
  • Additional advice on administration, marketing, technical


Main conditions

Financeable industrial project with a valid industrial license and to realize considerable value for the economy. Characteristics:

  • Economically viable
  • To provide training and employment opportunities for Saudi
  • To use locally sourced raw materials
  • To integrate with other projects in KSA or GCC countries
  • To replace imports by local products
  • To target export opportunities
  • To bring advanced technology


Responsible entity

  • Saudi Industrial Development Fund

2. Loan Guarantee Program (KAFALAH) for small & medium enterprises

​Cover the risk of banks in financing small and medium enterprises

  • Guarantee rate up to 75% of loan

Main conditions

Legal entity

Annual sales < SAR 30 million

Viable in the economic, financial, technical and administrative terms

Contributes positively to the Saudi economy in terms of:

  • Hiring and training Saudi nationals
  • Replacing imported goods by local ones and/or producing high quality innovative goods and services

Responsible entity

  • Saudi Industrial Development Fund
  • Saudi banks

3. Productive Loans for small projects and start-ups

​Interest-free loans provided across a variety of paths to support the Saudi society


Main conditions

    • Saudi national
    • Specific conditions for each path


Responsible entity

  • Social Development Bank



Regional loan programs

1.Loan program for public/ private investment projects

​Financing for public/ private investment projects

  • Reduced interest rate to 2.5% for low-income Arab countries and 3% for other Arab countries
  • 4-6 grace period
  • Long term extended to 22-25 years


Main conditions

Public sector: request to be accompanied by a techno-economic feasibility study (to be considered for financing)

Private sector: only for legally independent entity with:

  • Sound financial position

    Good management practices

    Operating in a purely commercial basis

    Main objective of developing the economy

    Not less than 51% of capital owned by citizens of member states of the Arab Fund

Responsible entity

  • The Arab Fund for Economic and Social Development

2. Loan program for economic development and reform in Arab countries

​Loans and facilities offered to help address overall balance of payment deficit of member countries; include 4 types of loans that vary in size, terms and maturity


Main conditions

The fund must take into consideration when lending to Arab countries:

  • Fairness and equal opportunity of access to Fund’s loans

    Safeguard of the Fund’s ability to maintain its continuity in growth

    Ensure that the resources it lends are used safely by borrowing members who must have the ability to meet their obligations

Responsible entity

  • Arab Monetary Fund

3. Financing facilities for trade transactions of goods of Arab origin

​Refinancing of Arab exports to Arab & non-Arab countries through lines of credit, e.g., pre-export credits, post-shipment credits, buyers’ credits, and import credits


Main conditions

  • Goods entirely produced or manufactured in an Arab country from primary resources and other domestic components, or if the value added in an Arab country is at least 40% of the value of the goods

Responsible entity

  • Arab Trade Financing Program

4. Political & commercial risk insurance for investments and export credit guarantees

​Insurance schemes and guarantees to encourage investments in Arab countries, and enhance inter-Arab trade and Arab exports worldwide


Main conditions

  • Investment insurance for investments in an Arab country, the investor shall not be from the same country of the investment
  • Export credit guarantees for exports to/from Arab countries

Responsible entity

  • The Arab Investment & Export Credit Guarantee Corporation

5. ​Equity & debt financing for enterprises and productive projects in member countries

​Offers different financing schemes to support investment capital of projects, grants loans to enterprises and productive projects, and accepts deposits to mobilize financial resources in accordance with the provisions of Islamic law


Main conditions

Prospective member country should:

  • Be a member of the Organization of Islamic Cooperation (OIC)

    Pay its contribution to the capital of the Bank

    Be willing to accept such terms and conditions as may be decided upon by the bank's Board of Governors

Responsible entity

  • Islamic Development Bank