While fossil fuels remain Saudi Arabia’s economic engine, IFC is helping the country look toward the future with projects like its recent $20 million investment in Saudi Orix Leasing Company (SOLC) to help it expand sustainable energy financing and
IFC advised the General Authority of Civil Aviation (GACA) of the Kingdom of Saudi Arabia, which had been operating at a deficit of $5 per departing passenger, in two landmark private sector participation projects: the expansion and rehabilitation of
IFC’s strategy in Saudi Arabia focuses on stimulating the growth of non-oil industries, and small and medium enterprises (SMEs), helping create the jobs needed for the country’s growing population. IFC focuses on supporting the country’s financial markets – particularly housing finance, insurance, and leasing – infrastructure development, and lending to SMEs as ways to support job creation and economic growth. We also encourage cross-border investments, helping Saudi companies expand into other emerging market countries, particularly in the areas of health, education, and infrastructure.
IFC’s efforts in Saudi Arabia have largely focused on financial markets and facilitating cross-border investments. In fiscal year 2012, IFC committed $2.8 million to the country. Our current portfolio stands at $129 million. IFC also works with Saudi companies looking to expand to Egypt, Ethiopia, Kenya, Jordan, Ghana, Algeria, Pakistan, and Yemen in key sectors, including health, infrastructure, financial markets, tourism and manufacturing services. Our recent investments include:
A $30 million loan to Riyad Bank as part of IFC’s partnership with the bank to introduce a new student loan program for university students;
A $20 million investment in Saudi Orix Leasing Company (SOLC) to help it expand sustainable energy financing and increase access to finance for smaller businesses in Saudi Arabia;
A $27 million equity investment in supporting the establishment of the first independent housing finance institution, Saudi Home Loans (SHL), in the Kingdom;
A $3.5 million investment in the establishment of Al Ahli Takaful, a new Shariah-compliant insurance company;
$46 million in financingforKingdom Hotel Investment in Ghana;
$60 million in short-term financing to FimBank to support trade in the region;
$120 million for an 11 percent stake in Egyptian Refinery Company (ERC);
A $20 million equity investment in the Swicorp Intaj ll Fund which will invest in 12 to15 mid-to-large capitalization companies;
$55 million for Saudi German Hospitals; and
A $50 million investment in Creative Energy Resources Company to acquire, develop, build, own, and operate power sector projects in MENA.
In Saudi Arabia, IFC is providing advisory services to strengthen financial markets, promote public-private partnerships, and support small and medium enterprise development. IFC has:
Advised the General Authority of Civil Aviation on the building of a state-of-the-art airport terminal in Medina;
Provided training to the banking sector on risk management, as well as advising how to navigate uncertainty in global financial markets, identify sustainable investments, and build a stronger banking sector in the country;
Helped Saudi Hollandi Bank support the kingdom's small businesses and encourage economic diversification by advising the bank on its expansion into small and medium enterprise banking operations;
Organized conferences on SME risk management, corporate governance, and housing finance.
Helped Riyad Bank to manage and promote the Saudi Arabian version of IFC’s SME Toolkit that helps local SMEs strengthen their managerial skills to develop, access finance, and enter new markets; and
Advised the General Authority of Civil Aviation (GACA) of the Kingdom of Saudi Arabia on the expansion and rehabilitation of the Hajj terminal at the King Abdulaziz International Airport (KAIA) in Jeddah.