What SIDF asks for
The Saudi Industrial Development Fund finances industrial, mining, logistics and renewable energy projects. Its published loan requirements state that submitting a feasibility study is mandatory, and list it alongside a separate financial model, an overview of the borrower and the background and experience of the owners.
SIDF also publishes a feasibility study preparation guideline. It is the most detailed set of requirements of any Saudi funder, and it is the structure we build every SIDF study around.
What we prepare
Market study
- Product description and target markets: local, GCC and export, each assessed separately
- Supply: local producers and imports, with their capacity and product range
- Demand history for the previous five years, from recognised sources such as foreign trade statistics
- Price ranges by segment, export prices and your proposed selling price
- Projected sales and market share for the first five years
- Competition, segments and channels, sales support and any marketing agreements
Technical study
- Manufacturing process and installed capacity
- Machinery and equipment, building and civil works, safety equipment, vehicles and IT
- Technology, know-how and licensing agreements
- Raw materials and utilities
- Manpower, including a Saudisation plan across technical, marketing, financial and administrative roles
- Pre-operating expenses
Financial study and model
- Total capital cost and total operating cost for the first five years of production
- An Excel financial model with profit and loss, capital structure and cash flow including loan repayments
- Return on investment, payback period, NPV and IRR
- Sensitivity analysis and risk assessment
- Financing plan, and a liquidity plan broken down quarterly for years one and two
How SIDF reads the file
After an application is registered, SIDF analyses the project from credit, marketing and technical perspectives. In practice that means three different readers looking for three different things: whether demand is evidenced, whether the plant and costs are realistic, and whether the cash flow services the debt. A study that is strong on one and thin on another tends to come back with questions.
We write each section with its reader in mind, and keep the narrative, the tables and the Excel model on the same numbers. If an assumption changes during review, it changes everywhere.
How much SIDF finances
SIDF's share of project cost depends on where the project is located. Its published incentives for promising regions and cities set the following limits:
| Location class | Examples | SIDF share, up to | Maximum tenor |
|---|---|---|---|
| First class | Riyadh, Jeddah, Dammam, Jubail, Makkah, Yanbu, Ras Al-Khair | 50% | 15 years |
| Second class | Al-Qassim, Al-Ahsa, Rabigh, Taif, Al-Kharj and Sudair industrial cities, Madinah | 60% | 20 years |
| Third class | Hail, Northern Borders, Jouf, Tabuk, Jizan, Najran, Al-Baha, Asir | 75% | 20 years |
The rest of the project cost has to come from the owners or other lenders, which is why the financing plan and evidence of owner liquidity matter as much as the market study. Check the current terms with SIDF before you rely on them.
Questions we're asked
Does SIDF have approved consultants for feasibility studies?
No. SIDF states that it does not have certified consulting firms to conduct feasibility studies. What it does publish is a guideline setting out what the study must contain.
Can a foreign-owned company apply to SIDF?
Yes. SIDF finances foreign investors that hold a licence from the Ministry of Investment and meet its essential requirements.
Do you submit the loan application for us?
The application is made by your company through SIDF's online portal and handled by an SIDF relationship manager. We prepare the study, the financial model and the supporting sections, and help you answer the questions that come back during evaluation.
How long does an SIDF study take?
It depends on the sector, how much data you already hold and whether supplier quotations are in place. We give you a timeline with the quote after the scoping call.
We already have a study from another adviser. Can you review it?
Yes. We can review an existing study and model against SIDF's guideline, list the gaps and fix them, which is often quicker than starting again.