Concessional government loans for factories and industrial projects
The Saudi Industrial Development Fund (SIDF) provides concessional loans (very low rates and long tenors) for industrial projects in Saudi Arabia. Goal: support local manufacturing and Vision 2030 economic diversification. Accepts even new projects (no operating history) if the project is well-structured.
20,000,000 ومعلى
SAR max
Up to 20 years
Tenor
3 to 6 months (detailed review)
Speed
2-4% APR
Cost
Submit initial application via SIDF website with preliminary feasibility
SIDF reviews: local value-add, job localization, commercial viability
On preliminary approval, submit detailed feasibility and operating plans
SIDF negotiates terms: rate (typically 2-4%), tenor, repayment schedule
After signing, financing disburses in stages based on project progress
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Maximum amount
20,000,000 ومعلى SAR
Tenor
Up to 20 years
Cost structure
2-4% APR
Funding speed
3 to 6 months (detailed review)
The Saudi Industrial Development Fund (SIDF) is the kingdom's industrial-sector financing arm, founded in 1974. It offers concessional financing for industrial projects at terms better than commercial markets — 2-4% APR (below commercial bank rates), tenures up to 20 years, grace periods up to 4 years. SIDF finances up to 75% of project cost for productive industrial projects.
Financed sectors: food manufacturing, chemicals, plastics, metals, pharmaceuticals, building materials, ICT, energy. SIDF prioritizes projects supporting Vision 2030 — local manufacturing, specialty petrochemicals, transformative industries, and the circular economy. Eligibility: registered Saudi company, detailed business plan, approved feasibility study, 25% self-funding of project cost.
Key notes: SIDF processing takes longer than commercial banks (6-12 months for approval), but the financing benefits are worth the wait for large projects. Projects registered in the "Saudi Made" program get priority and faster processing. Projects in MODON-designated industrial cities (Jubail, Yanbu) get additional support for land and infrastructure. SIDF doesn't finance alone — you need supplementary financing from a commercial bank to cover the remaining project cost. With the 2022 launch of the National Industrial Strategy, SIDF now offers new financing products for specialty industries — local EV manufacturing, semiconductors, robotics. The 2024 SIDF concessional terms for green-hydrogen and carbon-capture projects are some of the most favorable in the GCC.
Usually no. SIDF specializes in manufacturing and industrial projects. For services and trade, use other lenders (banks, crowdfunding platforms, Kafalah). But industry-supporting projects (logistics, energy, industrial vocational training centers) may qualify.
Typically 3-6 months from application to signing. Large projects (over SAR 100M) may take up to a year. Longer than commercial financing but terms are much better (2-4% vs 8-14%).
Yes, and this is the preferred strategy. SIDF prefers 25-30% of the project to come from other sources (equity, guarantors, commercial loans). SIDF finances the main fixed assets (factory, equipment); other sources cover working capital and expansion.
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