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RIYADH: Since its establishment in 1974, the Saudi Development Fund has extended assistance to other countries in the form of soft loans and grants for various development projects in different sectors.
Since its establishment, the fund has supported more than 800 development projects worth $20 billion in more than 100 countries, according to official data. The Saudi fund continued its efforts in 2023. Below are highlights of the Fund’s activities in 2023.
Petroleum derivatives for Pakistan
SFD financed $1 billion worth of oil derivatives for the South Asian country in January 2023, when Pakistan was facing tough economic conditions amid dwindling foreign exchange reserves and rapidly depreciating local currency.
Oil derivatives are financial products whose underlying assets are energy products such as crude oil. These can be traded to access their value, which is used as the basis for contracts.
“The agreement aims to support Pakistan’s economy, foster sector growth, overcome economic challenges and build a sustainable economy,” the Saudi fund said in a statement at the time.
“This comes as a continuation of the support provided by Saudi Arabia in 2019 with loans totaling $4.4 billion in oil derivatives,” it added.
In April, SFD signed a $240 million loan agreement to support the construction of a large hydropower facility in northwestern Pakistan.
The Mohmand multipurpose dam project will strengthen water and food security and improve living standards in Pakistan’s Khyber Pakhtunkhwa province.
In August, SFD also allocated a $90 million grant for this project to open the King Abdullah Campus of Azad Jammu and Kashmir University in Pakistan.
The campus aims to provide education and research opportunities to over 10,000 students and contribute to Pakistan’s sustainable socio-economic development.
SFD enters Caribbean countries
In January 2023, SFD expanded into the Caribbean by signing an $80 million loan agreement for the expansion of the University of the West Indies in Goto, Antigua and Barbuda.
The funding is currently being used to foster scientific innovation and add educational facilities to universities, as well as to achieve the Caribbean region’s Sustainable Development Goals.
The financing agreement also includes the construction of seven energy-efficient buildings to accelerate sustainability efforts.
Saint Vincent and the Grenadines
In April, the Fund signed two development loan agreements with another Caribbean country, Saint Vincent and the Grenadines.
The first agreement, valued at $1 million, will oversee the construction of a primary care center to improve the quality and resilience of the island nation’s health sector, while the second agreement, valued at $10 million, will oversee the construction of a cultural center. and allocated to the construction of a craft market. Bellevue Produce.
Together, the two projects will contribute to achieving the United Nations Sustainable Development Goals, in particular health, well-being, decent work and economic growth.
These projects are also expected to significantly boost tourism, social and cultural growth, and public health in Saint Vincent and the Grenadines.
Mango Key Bridge in Madagascar
In August 2023, SFD laid the foundation stone to begin construction of the Mango Key Bridge in Madagascar, an island nation off the southeast coast of Africa.
The fund provided $20 million in soft loans for the project, and construction work also received support from the Arab Coordination Group, Malagasy government agencies and development funds.
Once completed, the Mangoki Bridge is expected to connect Madagascar’s Atsimo Andrefana and Menabe regions, reducing travel time between these two destinations and making it easier for local farmers to get their produce to market. .
Agreed $53.33 million in aid to Oman
In September, SDF signed a $53.33 million loan agreement with Oman to support the growth of Omani small and medium-sized enterprises.
The funding is part of a major $150 million aid program for Oman provided by Saudi Arabia through the SFD.
Grenada climate change project
In October, SFD signed a financing agreement with Grenada to provide $100 million for climate-smart infrastructure projects.
At the time, SFD said the loan would support the development of climate-smart infrastructure in the towns of St. George, Greenville and neighboring areas in Grenada.
The project includes the construction of breakwaters, the development of water and sewage networks, and the modernization and development of sewage treatment systems.
The climate infrastructure project also includes remote sensors to monitor air pollution in green buildings.
Loans to the Bahamas and Mauritius
In September, SFD signed two financing agreements totaling $140 million to accelerate progress on infrastructure projects in the Bahamas and Mauritius. The first loan agreement, valued at $70 million, will be used to fund the Family Islands Airport Renaissance Project.
The second loan agreement is also worth $70 million and will be used to support “the construction of the Rivière des Angguilles dam project.”
Development financing for Tajikistan
In December 2023, SDF signed a development loan agreement worth $100 million with Tajikistan to finance the Rogun hydropower project. This is a groundbreaking initiative to strengthen energy, food and water security and promote sustainable development in the Central Asian country.
SFD’s development financing will contribute to a more sustainable and equitable food and water future for Tajikistan, while advancing the country’s energy transition and climate resilience, resulting in affordable and reliable food and water futures. Energy will improve productivity and social welfare of the people, according to one report, press statement.
The project will contribute to national energy security and promote sustainable development in Tajikistan by providing renewable electricity supply to meet local demand and expand domestic and regional electricity production. It is intended to support you.
The loan agreement will also finance the construction of a 335-meter-high dam that will increase irrigation capacity and enhance agricultural activities across Tajikistan.
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