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 promoting selective business and 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.
In Saudi Arabia, IFC also focuses on encouraging cross-border investments, helping Saudi companies promote growth in 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. IFC’s cooperation with the General Authority for Civil Aviation has also grown significantly over the last decade, culminating in the recent landmark Medina airport project which helped mobilize $1.2 billion into the kingdom. The expansion of the Medina international airport, as part of a public-private partnership, is the first of its kind in the Gulf.
Previous direct investments in Saudi Arabia include:
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. IFC helped establish Saudi Orix Leasing with an equity investment of $5.5 million in partnership with Saudi Investment Bank;
A $27 million equity investment to support the establishment of the first independent housing finance institution, Saudi Home Loans, in the kingdom in partnership with Arab National Bank;
A $3.5 million investment in Al Ahli Takaful, a new Shariah-compliant insurance company in partnership with NCB;
$50 million in Shariah-compliant long-term funding for housing finance in the country;
In addition, SABB, Bank Aljazira, and Banque Saudi Fransi have contributed to IFC’s Global Trade Liquidity Program
Investments facilitated in emerging markets through Saudi Arabian companies
$200 million total financing for renewable power generation in Turkey through ACWA Power
A total commitment of $33 million to help with water treatment in Indonesia though Moya
A $75 million investment to help Al Hokair expand its retail business in MENA and Central Asia
$46 million in financing for Kingdom Hotel Investment in Ghana
$55 million to support the expansion of Saudi German Hospitals in the region
$60 million in short-term financing to FimBank to support trade in the region
An $85 million investment 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
A $50 million investment in Creative Energy Resources to help the company acquire, develop, build, own, and operate power projects in MENA.
IFC helps provide financing to small and medium enterprises, supports training to entrepreneurs, and facilitates public-private projects to improve infrastructure.
IFC supported Alrajhi Bank, Saudi Hollandi Bank, and Riyad Bank expand their small and medium enterprises (SMEs) operations and encouraged economic diversification
IFC helped Riyad Bank 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;
IFC and Samba Financial Group trained SMEs and micro enterprises through Business Edge program
IFC provided technical assistance to SIMAH to support SMEs
IFC Organized conferences on SME risk management, corporate governance, and housing finance.
IFC 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 with Institute of Banking
•IFC advised the General Authority of Civil Aviation on the expansion of the Hajj terminal at the King Abdul-Aziz International Airport (KAIA) in Jeddah and the rehabilitation of a desalination plant