Saudi’s Ministry of Finance signs deal to prove project loans worth over $200mn

Saudi’s Ministry of Finance signs deal to prove project loans worth over $200mn
Saudi Arabia's finance ministry has signed 17 agreements for project loans worth $201.5m [representational image].
Published: 31 July 2018 - 3:07 p.m.
By: Neha Bhatia

Saudi Arabia’s Ministry of Finance has signed 17 agreements to provide project loans worth $201.5m (SAR755.8m).

While additional details of the projects are yet to be publicised, it has been revealed that these loans will fund developments with an investment value of $413.3m (SAR1.55bn) across the health, education, and hospitality sectors.

The $201m amount is part of the Saudi government's Local Lending Programme, aimed at supporting Saudi citizens and encouraging the private sector to invest in service projects.

Tariq bin Abdullah Al-Shohaib, Undersecretary for Revenues Affairs at the Ministry of Finance, and supervisor of the loan programme, signed the agreements, Saudi’s state news agency reported.

This round of funding is the latest in recent incentives to boost real estate development in the kingdom.

Funds worth $227m (SAR851m) were provided by the finance ministry for the development of 12 projects this March.

Five of the 12 projects will focus on healthcare, and result in the provision of 1,370 beds across a total area spanning 42ha. 

The healthcare projects will be developed in Riyadh, Al Khobar, Bish, and Abha, and a private university, spanning 1.4ha, will be built in Al Madinah Al-Munawarah.

Finally, six hotel and tourism projects will be developed across 5.6ha of land in Al-Kharj, Sharourah, Najran, Tabuk, Jazan, and Al-Khobar.

Commenting on the programme at the time, Al-Shohaib said the initiative was aimed at supporting "the development goals of the Kingdom's Vision 2030, [by] providing the necessary financing and support for the private sector, [and] strengthening the economy's ability to generate diverse employment opportunities".

 

 

 

 

 

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