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Saudi Fund for Development marks 50 years with efforts in emerging economies

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Updated 17 November 2024
Nirmal Narayanan
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Saudi Fund for Development marks 50 years with efforts in emerging economies

Updated 17 November 2024
Nirmal Narayanan

RIYADH: As the world is being divided by geopolitical tensions and wars, Saudi Arabia’s development fund is extending a helping hand to emerging nations through soft loans and grants.

Established in 1974, the Saudi Fund for Development has supported more than 800 projects worth $20 billion in over 100 countries.

As it celebrates 50 years since it was founded, the fund’s offerings for developing nations show no signs of slowing down.

Here are the highlights of its activities in the first nine months of 2024.

Water project to Benin

In February, SFD signed a memorandum of understanding with Benin to allocate a $5 million grant to support the implementation of the fifth phase of the Saudi Program for Drilling of Wells and Rural Development.

According to a press statement, the water project is expected to overcome the effects of drought in 37 villages across the West African nation.

“The project will contribute to the growth and prosperity of the infrastructure sector, provide access to water and food security, maintain public health, and reduce environmental pollution, to help achieve the Sustainable Development Goals, specifically SDG 6, clean water and sanitation,” said SFD.

The fund’s development cooperation with Benin started in 2008, with it providing soft loans to finance six development projects and programs worth more than $145 million in the country over the past sixteen years.

Supporting Turkiye’s education sector

In February, SFD signed a $55 million loan agreement with Turkiye to rehabilitate five public schools covering an area of approximately 55,000 sq. meters.

The project will equip these schools with the necessary equipment and resources to protect them against earthquake damage, ensuring the continuity of their quality and efficiency, according to a statement.

Over the past four decades, SFD has financed nine development projects and programs in Turkiye, worth over $300 million, in multiple sectors including energy, health, agriculture, and education.

Empowering transport sector in Tunisia

Earlier this year, the fund signed a development loan agreement worth $55 million to renew and develop the railway network for phosphate transportation in Tunisia.

According to a press statement, the project will help renew approximately 190 km of the system, support increasing the capacity for transporting phosphate, and contribute toward Tunisia’s economic growth by creating direct and indirect job opportunities.

Loan to support clean energy growth in Pakistan

In March, SFD signed two development loan agreements totaling to $101 million to finance the establishment of the Shounter Hydropower and the the Jagran-IV Hydropower Projects in Pakistan.

A loan worth $66 million is intended to construct the 48-megawatt Shounter Hydropower station and connect it to the country’s national electricity grid.

This project also involves dam construction, water diversion and purification structures, powerhouse development and discharge tunnel construction.

The second loan, amounting to $35 million, will help establish the Jagran-IV Hydropower Project, which is set to have a capacity of 22 MW. This project entails the construction of dam, powerhouse, water diversion and purification building, as well as the provision of generators, transformers, necessary equipment, and transmission lines.

“These two agreements mark a continuation of efforts to boost clean energy projects in Pakistan, addressing challenges posed by conventional energy and its associated financial costs,” said SFD.

It added: “Additionally, they underscore the significance of clean energy and its contribution to fostering vital opportunities for sustainable development, aiming to support social development, stimulate economic growth, and meet population basic needs.”

In 2023, SFD financed oil derivatives worth $1 billion for Pakistan, when the South Asian nation was facing a tough economic situation amid dwindling forex reserves and rapidly depreciating national currency.

Supporting energy sector in Saint Kitts and Nevis

In April, SFD signed another development loan agreement worth $40 million to bolster the energy sector in Saint Kitts and Nevis.

According to a press statement, the loan centers on the financing of the expansion of the Needsmust Power Plant Project in the island nation. The project entails the establishment of a state-of-the-art dual-fuel power generation station with a capacity of 18 MW.

“This initiative is poised to significantly enhance the country’s energy production capabilities, contributing to a flexible hybrid power generation platform. It emphasizes efficiency improvements, utilization of clean fuel, and a pivotal step toward sustainable energy practices,” said SFD.

Aid to disaster-affected communities in Saint Vincent and the Grenadines

To support the disaster-affected communities in Saint Vincent and the Grenadines, the SFD in April signed a $50 million developmental loan agreement with the Caribbean nation.

According to a press statement, the agreement aims to finance the construction and rehabilitation of buildings and facilities affected by natural disasters in the country.

“The goal is to enhance the sustainability and resilience of these structures to withstand future disasters and climate change effects. The project encompasses furnishing and equipping buildings with necessary equipment, including the establishment of four health care facilities, construction of primary and secondary schools, government buildings, and rehabilitation of damaged houses by volcano, among other infrastructure works,” said SFD.

SFD enters El Salvador and Nicaragua

In June, SFD forayed into El Salvador and Nicaragua by signing developmental loan agreements with these nations.

The fund signed a $83 million deal with El Salvador to fund a water treatment and biogas power generation project in the Central American country.

“The project will treat wastewater that currently flows into the Acelhuate River, while also producing biogas for renewable electricity generation. Expected to benefit over 1.2 million people, it will significantly increase El Salvador’s renewable energy capacity, and contribute to environmental sustainability,” said SFD.

 

 

In the same month, the fund signed another developmental loan agreement worth $103 million with Nicaragua to finance the development of the Carlos Centeno Departmental Hospital in the Central American nation.

According to a press statement, the fund will be used to construct a 25,000-sq.-meter hospital with a capacity of 300 beds, serving the surrounding regions.

The facility will also include specialized clinics for surgery, comprehensive child immunization, training and qualification of medical personnel, emergency departments, and a full range of integrated health care services.

Supporting socio-economic growth in Dominica

In September, SFD signed a developmental loan agreement worth $41 million with Dominica to enhance socio-economic growth in the country.

The agreement aims to rehabilitate seven main streets in Roseau, which will help improve road connectivity, reduce congestion, enhance safety and access to basic services, as well as facilitate the smoother movement of people and goods, according to a press statement.

 

 

The loan will also contribute to commercial and residential development and create numerous job opportunities.

In the same month, SFD also signed a deal worth $25 million to co-finance the development of renewable energy infrastructure in the Solomon Islands.

The financing initiative aims to reduce dependency on fossil fuels and promote sustainable development in the Oceanian nation. 

Topics: Saudi Fund for Development Saudi Arabia

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Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

Updated 5 sec ago
Reem Walid
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Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

Updated 5 sec ago
Reem Walid

RIYADH: Saudi Arabia’s Jameel Motors has entered the South African market, securing exclusive rights to distribute vehicles from Chinese company Changan.

The firm, owned by Saudi Arabia's Abdul Latif Jameel Group, has signed a deal to distribute SUVs, sedans, pickups, and electric vehicles in the African country, according to a statement.

South Africa, the continent’s largest automotive market, presents a strong long-term investment opportunity, driven by growing demand for affordable, tech-enabled vehicles.

The country saw a 18.3 percent year-on-year increase in new passenger car sales in the country in January.

In a statement, Jasmmine Wong, CEO — Mobility at Abdul Latif Jameel, said: “We are thrilled to announce Jameel Motors’ market entry to South Africa, especially as we do so with Changan Automobile, a forward-thinking automotive player with exceptional products.”

Wong added: “We are looking forward to driving long-term growth in the market and empowering drivers across South Africa with expanded and superior personal mobility choices.”

Jameel Motors’ commitment includes creating jobs and developing local dealerships, contributing to the country’s economic growth.

Under the terms of the newly signed agreement, Jameel Motors will initially focus on the distribution of Changan and Deepal products.

Changan offers sedans, SUVs, and pickup combustion engine models, while Deepal focuses on new energy cars.

Building on its strong track record, Jameel Motors is well-positioned to meet local customer preferences, with vehicles expected to be available for purchase in the fourth quarter of 2025.

Xiao Feng, general manager at Changan Automobile Middle East and Africa business unit, said: “This is a new milestone for our business in South Africa. Changan Automobile, as a leading Chinese automotive company, has been committed to building a world-class automotive brand.”

Feng added: “We are confident that, through the strategic cooperation with Jameel Motors, we will be a key player in the South African market.”

Jameel Motors in South Africa will be led by Marinus Venter, an expert with 18 years of experience in leading automotive brands.

“I am honored to join a business that is building on 70 years of automotive excellence, as we introduce Changan and Deepal vehicles to South Africa,” Venter said.

“By leveraging Jameel Motors’ extensive experience and Changan Automobile’s renowned focus on safety, quality, and technology, I believe we can effectively meet the diverse automotive demands of South African drivers and deliver a positive market experience,” the country manager at Jameel Motors South Africa added.

Topics: Abdul Latif Jameel Motors Abdul Latif Jameel Group

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Saudi MSME lending hits $94bn driven by government-backed reforms 

Updated 24 min 2 sec ago
Dayan Abou Tine
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Saudi MSME lending hits $94bn driven by government-backed reforms 

Updated 24 min 2 sec ago
Dayan Abou Tine

RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 27.62 percent year on year in 2024, totaling SR351.7 billion ($93.8 billion), according to official data. 

The Kingdom’s central bank, also known as SAMA, revealed that 94.82 percent of these loans were provided by Saudi banks, while finance companies contributed 5.18 percent. 

MSME lending made up 9.4 percent of banks’ and 18.9 percent of finance companies’ loan portfolios in 2024, reflecting growing alignment with the government’s Vision 2030 target of allocating 20 percent of credit to this vital sector. 

In 2024, medium-sized enterprises received the largest share of credit facilities, totaling 53.23 percent, or SR187.21 billion. 

Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 70 percent to SR42.32 billion, despite holding a smaller overall share. 

Credit to small enterprises, which made up 34.74 percent of MSME financing, rose by 32.4 percent to SR122.17 billion during the same period. 

The sharp increase in bank lending to Saudi Arabia’s SMEs aligns closely with the Kingdom’s Vision 2030 objective of raising the sector’s contribution to gross domestic product to 35 percent. 

To help achieve this target, Saudi banks are increasingly extending credit to small businesses, supported by government-backed incentives such as the Kafalah loan guarantee program, which operates under the supervision of Monsha’at. 

Through Kafalah, the government guarantees up to 80 percent of loans extended to eligible SMEs, significantly reducing the risk for commercial banks and encouraging broader lending. 

The SME Bank plays a complementary role by targeting underserved and high-risk segments through alternative financing solutions, such as debt-based crowdfunding. 

In its latest move, the institution allocated SR240 million in partnership with fintech platforms Manafa, Lendo, and Tameed, enabling short-term, flexible financing of up to SR1 million for qualifying MSMEs. 

Together, these efforts are expanding access to capital across the SME landscape, supporting entrepreneurship, job creation, and economic diversification. 

According to the latest report by Monsha’at, in the fourth quarter of 2024, the Kingdom saw a 67 percent quarter-on-quarter surge in new commercial registrations, totaling more than 160,000 new businesses, bringing the total to over 1.6 million registered enterprises nationwide. 

The rise was particularly strong in e-commerce, with a 10 percent increase in new digital business registrations, pushing the total number of e-commerce firms to 40,953 by the end of the year. 

Riyadh province led the growth, accounting for 39 percent of all new registrations, followed by Makkah with 17 percent, the Eastern Province with 16 percent, and smaller but growing contributions from regions like Qassim and Asir. 

This surge in new business formation reflects increasing entrepreneurial activity across the Kingdom — a trend aligned with goals to diversify the economy and build a thriving private sector. 

The synchronized rise in both entrepreneurial activity and credit availability reflects a maturing SME ecosystem and a coordinated national strategy to fuel private sector-led growth. 

Topics: micro small small and medium enterprises (SMEs) micro-Small and Medium Enterprises (mSMEs) Monsha’at

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New laws simplifying Saudi business registration to take effect

Updated 21 min 30 sec ago
Reem Walid
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New laws simplifying Saudi business registration to take effect

Updated 21 min 30 sec ago
Reem Walid

RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3. 

Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported. 

The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added. 

The changes come as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce. 

The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030. 

Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”

He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.” 

Existing subsidiary registers will have a five-year grace period to comply with the new regulations. 

Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits. 

The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities. 

Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names. 

The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment. 

In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030. 

Topics: business registrations Ministry of commerce

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Saudia launches direct flights to Bali 

Updated 01 April 2025
Nour El-Shaeri 
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Saudia launches direct flights to Bali 

Updated 01 April 2025
Nour El-Shaeri 

RIYADH: Saudia has launched a scheduled service to Bali with three weekly flights from Jeddah, marking the airline’s second regular destination in Indonesia after Jakarta.

The inaugural flight, SV856, departed from King Abdulaziz International Airport in Jeddah on March 31, operated by a Boeing B787 Dreamliner. 

Saudia stated in a release that flight times have been coordinated to connect with its wider domestic and international network, as well as with services operated by members of the SkyTeam alliance. 

The addition of Bali is part of a broader plan announced in February to introduce 11 new destinations in 2025, including Vienna, Venice, and Larnaca, as well as Athens, Heraklion, Nice, Malaga, and El-Alamein.

The expansion comes as the airline posted a 16 percent year-on-year increase in international passenger traffic in 2024 — growth that aligns with Saudi Arabia’s National Tourism Strategy, which targets 150 million visitors annually by 2030, and aims to create 1.6 million jobs. 

Saudia is working to enhance its competitive position and international connectivity by adding both scheduled and seasonal destinations, the release stated. 

The Bali route will be served by its Boeing B787 Dreamliner aircraft, which features advanced technologies, in-flight entertainment tailored for a wide range of passengers, spacious seating, and other onboard services. 

Currently operating a fleet of 147 aircraft from Boeing and Airbus, Saudia plans to expand capacity and route coverage with the addition of 118 new planes. 

As part of its 2025 network expansion strategy, Saudia also plans to add Antalya in Turkiye and Salalah in Oman, increasing its global footprint to over 100 destinations across four continents. 

The move supports the Kingdom’s Air Connectivity Program, which has introduced more than 60 new direct routes since its launch in 2021. 

With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between Saudi Arabia and the world. 

According to the General Authority of Civil Aviation, flight operations in the Kingdom reached approximately 905,000 in 2024, reflecting an 11 percent year-on-year increase. 

This included 474,000 domestic flights and 431,000 international flights. Air connectivity expanded by 20 percent, linking Saudi Arabia to over 170 destinations worldwide. 

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Middle East airlines witness 3.3% passenger demand growth in February: IATA 

Updated 01 April 2025
Nirmal Narayanan
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Middle East airlines witness 3.3% passenger demand growth in February: IATA 

Updated 01 April 2025
Nirmal Narayanan

RIYADH: Airlines operating in the Middle East recorded a 3.3 percent year-on-year increase in passenger demand in February, with total flight capacity rising 1.3 percent during the same period, an industry report showed. 

The latest data from the International Air Transport Association revealed global passenger demand, both domestic and international, increased by 2.6 percent over the second month of the year. 

This growth comes as many Middle Eastern countries focus on boosting the aviation sector to help diversify their economies away from oil dependency, with Saudi Arabia seeking to triple passenger numbers by 2030 compared to 2019 levels.

Commenting on the latest report, Willie Walsh, director general of IATA, said: “February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April.”  

The association added that the total load factor among carriers in the Middle East region stood at 82 percent in February, representing a rise of 1.6 percentage points compared to the same month in 2024. 

The load factor is a metric used in the aviation sector that measures the percentage of available seating capacity that has been filled with passengers.

A high load factor signifies that an airline has sold most of its available seats. 

IATA also reported that carriers in the Middle East handled 9.4 percent of global passengers in February, a figure that remained unchanged from January. 

Earlier this month, a report by consulting management firm Oliver Wyman stated that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035, reaching 2,557 aircraft. 

It added that this growth rate in the Middle East is nearly double the annual global growth rate, which is projected at 2.8 percent during the same period. 

Affirming the progress of the aviation sector in the Middle East, Saudi Arabia is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies later this year, with the aim of flying to 100 countries by 2030. 

In October, Riyadh Air signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft. 

In the same month, the company announced plans to order wide-body aircraft capable of seating more than 300 passengers in 2025. 

Riyadh Air is set to begin passenger flights this year. Shutterstock

According to IATA, international passenger demand growth increased by 5.6 percent in February compared to the same period in the previous year. 

However, international passenger demand growth was down compared to January, which witnessed a 12.3 percent rise. 

The report added that global domestic demand declined by 1.9 percent year on year in February. 

Africa witnessed a 6.8 percent rise in overall passenger demand, including both domestic and international, followed by Latin America at 4.6 percent, Europe at 4.3 percent, and Asia-Pacific at 4.2 percent. 

Air carriers operating in North America experienced a 3.2 percent decline in passenger demand. 

International passenger demand 

Airlines operating in the Asia-Pacific region led international passenger demand globally, marking a 9.5 percent growth in February compared to the same month in 2024. 

The total capacity of airlines in the APAC region rose by 8.3 percent year on year, while the load factor stood at 85.7 percent. 

APAC airlines handled 33.5 percent of global passengers in February, followed by Europe at 26.7 percent and North America at 22.9 percent. 

The report further indicated that international passenger demand among Middle East airlines increased by 3.1 percent in February compared to the same month in the previous year. 

The association also noted that the capacity of airlines in the Middle East region increased by 1.3 percent, while the load factor stood at 81.9 percent in February, representing a rise of 1.4 percentage points compared to the same month in 2023. 

According to IATA, international passenger demand among European air carriers rose by 5.7 percent year on year in February, while capacity increased by 4.9 percent during the same period. 

North American air carriers saw a 1.5 percent decline in international passenger demand growth, with capacity also decreasing by 3.2 percent. 

International passenger demand growth among Latin American airlines grew by 6.7 percent year on year in February, while capacity climbed by 9.9 percent. 

African airlines saw demand growth of 6.7 percent among international travelers. 

The capacity of these carriers also rose by 4 percent in February compared to the same month in 2024. 

Air cargo demand growth 

International cargo capacity increased slightly in February. Shutterstock

In a separate report, IATA revealed that air cargo demand declined slightly by 0.1 percent in February compared to the same period in the previous year, marking the first decline since mid-2023. 

Overall, cargo capacity, measured in available cargo tonne-km, decreased marginally by 0.4 percent year on year in February. 

The report added that international cargo capacity edged up by 1.1 percent over the month.

“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary — a leap year that was also boosted by Chinese New Year traffic, sea lane closures, and a boom in e-commerce,” said Walsh. 

He added: “Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.” 

Airlines operating in the APAC region drove cargo demand growth in February. 

According to IATA, cargo demand growth among APAC airlines increased by 5.1 percent year-on-year, while capacity rose by 2.7 percent during the same period. 

Air carriers in the Middle East region witnessed an 11.9 percent year-on-year decrease in air cargo demand in February, the slowest among the regions. 

The capacity of air carriers in the Middle East also decreased by 4 percent in February. 

“North American carriers saw a 0.4 percent year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5 percent year-on-year,” said IATA. 

The air cargo demand growth among European airlines dropped marginally by 0.1 percent in February compared to the same month in 2024, while capacity slightly edged down by 0.2 percent. 

Air carriers operating in the Latin American region witnessed a 6 percent year on year cargo demand growth in February, the strongest rise among all regions. The capacity of these airlines also rose by 7.6 percent during the same period. 

“African airlines saw a 5.7 percent year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6 percent year-on-year,” added IATA. 

Looking at trade indicators, IATA said that the industrial production index rose 3.2 percent year-on-year in February, the highest growth in two years, while world trade expanded by 5 percent. 

In February, the Purchasing Managers’ Index for global manufacturing output stood at 51.5, indicating growth. 

The PMI for new export orders rose slightly to 49.6 from the previous month, remaining just shy of the 50-mark, which is the growth threshold. 

The report added that jet fuel prices averaged $94.6 per barrel in February, representing a 2.1 percent decline compared to January.

Topics: International Air Transport Association (IATA) aviation sector

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