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King Salman orders allocation of $19.2 bln to stimulate Saudi private sector

Published: Updated:

Saudi Arabia’s King Salman bin Abdulaziz has issued a royal order approving allocation of $19.2 billion (72 billion Saudi riyals) for stimulating the private sector, the Saudi Press Agency (SPA) reported on Thursday.

According to the statement, the decision was based on what was submitted by Crown Prince, Crown Prince, Vice President of the Council of Ministers and Minister of Defense.

Among the most significant initiatives detailed by the order are the housing loan initiative, which will be supported with SAR 21.3 billion, indirect lending initiative for small and medium enterprises, which will get SAR 1.6 billion and the initiative to support the visual private sector with SAR 20 million.

The initiatives are aimed at stimulating the private sector, boost competitive capabilities of national companies and developing their products. It is also set to improve the commercial and investment environment and boost the developmental role of the private sector within the national economy as per Saudi Vision 2030.

Other highlights of the measures include:

• Residential housing loans worth 21.3 billion riyals
• A 10 billion riyal fund to support economic projects
• 1.5 billion riyals to support distressed companies
• 2.8 billion riyal government fund will be created to invest in smaller companies
• 400 million riyals will be spent on highly efficient air conditioning equipment
• 5 billion riyals of export financing
• 800 million riyals to boost the capital of Kafalah, a program which lends to small and medium-sized enterprises (SMEs)
• 1.6 billion riyals of indirect financing to SMEs
• 7 billion riyals worth of customs fees will be returned to SMEs
• 5 billion riyals for a program supporting large investments; the government did not give details
• 2.56 billion riyals of spending on the country’s broadband and fiber optics infrastructure
• 13.87 billion riyals to promote advanced construction techniques

(With Reuters inputs)