The Projects Support Fund Initiative signed an agreement with the Saudi Stock Exchange Company (Tadawul) to provide economic stimulus for listed companies. The signing was completed today 17 January, 2021. Mr. Fahad Al-Saif, CEO of the National Debt Management Center (NDMC) and Eng. Khalid Al-Hussan, CEO of Saudi Stock Exchange (Tadawul), signed the agreement.
The agreement comes with the objective of expanding the lending scope to the private sector in the healthcare, education and large real estate development sectors to positively affect GDP, create direct and indirect job opportunities, and support local content. The agreement targets companies listed in the Saudi Stock Exchange, indicating that the stimulus is to be provided through long-term loans to the companies.
The agreement contributes to bolstering the increase of financing limits for the listed companies in projects in the sectors that the Projects Support Fund Initiative targets, in order to encourage these companies to create new projects in the targeted sectors and to encourage unlisted companies to become listed. This comes within the framework of initiatives to incentivize and encourage private sector companies to offer and list their shares on the Stock Exchange. This is one of the initiatives of the Financial Sector Development Program, 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 Stock Exchange to achieve “Saudi Vision 2030" by becoming an advanced Stock Exchange.
The Projects Support Fund Initiative was established as one of the stimulus initiatives to support the sustainability and completion of projects with an initial capital of SAR 10 billion. The Fund is also focused on providing project-financing support in the healthcare, education and large real estate development sectors.