Project Idea

The financing of small and medium-sized enterprises in least developed cities, in order to promote economic development and create employment opportunities for Saudi citizens in these areas which are Hail, Al-Jouf, Tabuk, Najran and Ar'ar (under development).

 Project Targeted at

Saudi individual investors or companies aspiring to set up industrial projects in the least developed cities. These projects have to be constructed on the industrial cities that belong to the Saudi Industrial Property Authority (Modon).

 Funding Amount

The Bank finances up to SR three millions per project and investor’s share of financing is open.

Costs covered by Funding

Fixed assets such as buildings, machinery, furniture, transportation and non-fixed assets such as pre-operating expenses, in addition to working capital.

Costs excluded from the Funding

Fixed assets that have been used more than a year.

Documents required to obtain Financing

• Commercial Registration
• Copy of the National Identity Card
• Copy of academic qualifications
• Industrial license
• General layout for the project
• Machinery and production line layout
• Feasibility study
• Application form for an industrial loan (Arabic only)
• Power of Attorney if the applicant has no legal status in the project

• Offers for fixed assets.

Conditions for obtaining loan

• Filled-in application form to apply for an industrial loan
• Establishment of the project in these least developed cities located in the industrial cities of Modon which are Hail, Al-Jouf, Tabuk, Najran and Ar'ar (under development.
• Signing the land lease contract for land for the planned project
• Provide necessary guarantees for funding, if requested
• Commitment to recruit Saudi nationals in accordance with existing and future regulations
• Commitment to provide financial statements approved by External Auditors.

Loan Repayment Duration

Maximum of eight years; whereas the Bank may extend the period of repayment in certain cases.

Grace Period

 Up to a maximum of two years from the date of the beginning of the project.

Loan Disbursement

The disbursement of payments by the Bank will be in accordance with the regulations of the bank.