The Saudi government tends to provide loans as part of its local lending program to enhance the services provided to citizens through encouraging the private sector to invest in service projects. Under the patronage of His Excellency Dr. Hamad Al Bazie, Vice Minister of Finance, Mr. Tariq Al-Shuhayeb, Deputy Minister for Revenue Affairs and Supervisor of the Local Lending Program, signed SAR 755,810 million financing agreement for 17 health, education and hotel projects, on Tuesday, July 31st, 2018 at the Ministry of Finance's headquarter in Riyadh. The total investment in these projects amounts to SAR 1,547 billion. The signing ceremony was attended by projects owners, officials from the Ministry of Health, Ministry of Education, Ministry of Finance, the Saudi Commission for Tourism and National Heritage (SCTH), the Saudi Industrial Development Fund (SIDF), the Saudi Food and Drug Authority (SFDA), and Small and Medium Enterprises General Authority (SMEA).
In this regard, His Excellency Dr. Hamad Al Bazie, Vice Minister of Finance, stressed the importance of the private sector as one of the national economy pillars and a strategic partner in development; thus, signing borrowing agreements from the local lending program is a mean to support this vital sector's participation in the 2030 Vision comprehensive development plans.
Following the signing ceremony, Mr. Tariq Al-Shuhayeb, Deputy Minister for Revenue Affairs, with the participation of Mr. Mohammed Al-Mulla, Assistant Deputy Minister for Revenue Affairs, held a press conference to discuss the Local Lending Program and its financing agreements for development projects, as well as its strategy in line with Vision 2030 goals.
Mr. Tariq Al-Shuhayeb stated that the agreement includes financing the construction of eight health projects (hospitals and medical complexes) with a total amount of SAR 407,780 million in Riyadh, Dammam, Abu Arish, Jeddah, Abha, and Buraidah. As well as constructing eight educational projects (schools, collages, and universities) with a total amount of SAR 340,741 million in Riyadh, Medina, Jeddah and Dammam, along with a three-star hotel project in Jazan of 4,956 square meters.
These signed agreements are an extension of previous agreements signed by the Ministry of Finance during this year. Total health, education and hotel projects funded are 29, with an aggregate of SAR 1,600 billion, and total investments of SAR 3,747 billion distributed in 14 cities in the Kingdom.
It is worth mentioning that the local lending program – since it established till now – has financed 710 developmental projects with a total amount exceeding SAR 11 billion.