SIDF: requirements, the mandatory feasibility study and Promising Factories

General loan application requirements

The general requirements document for loan applications states: “Submitting the feasibility study is mandatory”, together with a financial model, a company profile, and the owners' background and experience ^[1].

Other requirements include the CR and articles of association, the industrial licence if any, a product list, three years of audited financial statements for the guarantor showing solvency of no less than the loan amount, a site plan, and price quotations for equipment and raw materials ^[1].

Feasibility study sections required by the fund

• Introduction: organisational structure, Saudization plan and timeline.
• Market study.
• Technical study: production method, capacity, equipment, utilities and labour.
• Financial study: investment costs, five years of operations, and an Excel model with the income statement, cash flows, return, payback period, net present value, internal rate of return, sensitivity and risks, financing plan and liquidity.

Source: the fund's feasibility study preparation guideline ^[2]. Madrous's Comprehensive Feasibility Study is built on these same areas, with a single financial model from which every figure is read.

Promising Factories programme

Concessional loans of up to 50% of project cost, with a 20% down payment, a 24-month grace period and a term of up to 10 years, for graduates of industrial incubators and businesses qualified through Ministry of Industry and Mineral Resources programmes. A feasibility study and implementation plan are required, and the client funds the remainder. Phase one is open, and phase two is “to be announced soon” according to the page ^[3].

Other programmes

• Working capital financing: for existing SIDF clients operating for at least 18 months, with repayment up to two years ^[4].
• Tanafusiya (competitiveness): up to 75% of project value, with a feasibility study including estimates of investment and operating costs ^[5].
• Afaq: for existing SMEs with three years of audited statements ^[5].

Frequently asked questions