Saudi Fund for Development (SFD)
The Saudi Fund for Development was established by Royal Decree in the month of Sha'ban 1394 AH (1974) and began its operations in the month of Safar 1395 AH (1975). At the time of its inception, the Fund's capital amounted to 10 billion Saudi Riyals; however, due to the developing countries' increasing need for assistance in order to implement development projects, the Fund's capital has been augmented three times, and in 1991 totalled 31 billion Saudi Riyals. Despite the fact that the Fund has been operating for a relatively short time, it has made great strides in the area of international development co-operation. The Fund now contributes to the financing of 3750 projects in 71 countries, consisting of 41 African countries, 25 Asian countries, and five countries in other parts of the world.
The terms under which the Saudi Fund for Development provides loans formulated to provide recipients with the greatest possible help;
-the loans are without conditions-funds are made available quickly and easily-repayment terms are generous (up to 50 years with a 10-year grace period)-the outright grant component of such loans can amount to 60% of the total-the cost of loans is generally 1%
Management and Organization
The Saudi Fund is a legal entity, which maintains an independent financial status.
The Saudi Fund commenced its activities with a capital of SR. 10 billion provided by the Saudi government. The capital has been increased in three phases to its current level of SR. 31 billion.
Scope of Activities:
Financing of development projects
The Fund’s contributions are provided through soft loans. It has no geographical exclusion and it deals directly with governments of the developing countries in financing priority developments projects. The Fund, however, assigns priorities to least developed, low-income countries.
Export Credit and Insurance
Since 1999, the Fund has undertaken the task of providing credit and insurance in support of non-crude-oil national exports. Certain Articles of the Fund’s Charter have been amended to correspond to the new mission.
Sectors of Saudi Fund Sanctioned Loans During 2009
1. Transportation & Communication
4. Social Infrastructure
c. Water and Sewerage
5. Industry and MiningSee more