Financing of Development Projects

The Fund contributes to these projects by providing soft loans. Its activity is not geographically restricted, and it also deals directly with the governments of the developing countries in order to participate in financing priority development projects. The Fund provides financing priority to the least developed and low-income countries.

Export Credit and Insurance

The fund's mission through the Saudi Export Program is to provide financing and guaranteeing national non- crude oil export. 

Statutory Framework

The Funds charter includes the basic regulations for providing development loans and financing and guaranteeing national exports.

First: Development Loans for Financing Development Projects 

The Following conditions have to be met to obtain the SFD's loan:

  1. The project to be financed in the recipient country should be proved economically or socially feasible.
  2. The funding of the entire project for which the loan is provided should be available.
  3. The loan should be disbursed and repaid in Saudi Riyal.
  4. The loan amount granted to any project should not exceed to 5% of the Funds capital.
  5. The total amount of the loans granted at one time to any country should not exceed to 10% of the Funds capital.

Second: Export Credit and Insurance

For financing and insuring exports, the Fund takes into consideration the following conditions:

  1. The eligible national commodities and services as well as the added value should be as follows:
    1. They can be subsumed under the industrially processed products, including the downstream petroleum sector products, industrial and agricultural goods, and the exported services and turnkey projects.
    2. The local added value to the commodities and services to be exported should be equivalent to but not less than 25%.
  2. Coverage Percentage and Finance Terms:
    1. The Funds financing percentage may reach up to 100% of the export transaction value according to the kind of exports, nature of transaction and the commercial and political risks involved.
    2. The financing terms vary from one to twelve years.
    3. The coverage percentage of the exports guarantee and insurance service is 90% of the total unpaid value of the exports.
  3. The Accepted Currency: The Saudi Riyal or US Dollar is approved as the official currency in all Programs transactions.
  4. The Required Guarantees for Loan Finance:

The Program fulfils the needed guarantees to secure the Funds rights based on the nature of transaction, its risks and the legal entity of its involved parties.