Projects Support Fund, Tadawul sign pact to provide long-term loans to listed firms

The Ministry of Finance’s Projects Support Fund Initiative signed an agreement with the Saudi Stock Exchange (Tadawul) to provide economic stimulus to listed companies.

The agreement aims to expand the lending scope to the private sector in the healthcare, education and large real estate development sectors, which will positively impact GDP, create direct and indirect job opportunities, and support local content.

The stimulus will be provided to listed companies through long-term loans to the companies.

Furthermore, the agreement will increase the financing limits for listed companies in projects in the sectors targeted by the fund, which will encourage companies to create new projects, as well as encourage unlisted companies to list.

The move falls within the framework of initiatives to incentivize and encourage private sector companies to offer and list their shares on Tadawul. This is one of the Financial Sector Development Program’s initiatives, which targets the development of the economy and the diversification of revenue sources, through the deepening of the financial sector and the development of the Saudi bourse to achieve Vision 2030 by becoming an advanced stock exchange.

The Projects Support Fund Initiative was set up as one of the stimulus initiatives to support the sustainability and completion of projects with an initial SAR 10 billion capital.