Saudi Fund for Development: A Historic Journey of Development in Over 100 Countries

Since its establishment in 1974, the Saudi Fund for Development (SFD) has played a pivotal role in enhancing economic and social development worldwide, especially in developing nations.

The SFD was created with a primary goal of providing soft loans to finance development projects and programs that contribute to sustainable growth and improve living standards in the least developed and most impoverished countries. Over the years, the fund’s activities have extended to more than 100 developing countries worldwide, making it one of the leading financiers of international development.

 Enhanced Support over Decades

The fund, established by a royal decree, commenced its development activities with capital of 10 billion Saudi Riyals. Over three stages, the Saudi government increased the SFD’s capital to 31 billion Saudi Riyals, embodying the Kingdom’s efforts in supporting global development.

Marking the fund’s 50th anniversary, SFD Chief Executive Sultan Abdulrahman Al-Marshad said its developmental contributions epitomize the generous support of the wise leadership. He underscored the tangible positive impact that the fund’s contributions have had on the lives of underdeveloped communities worldwide.

The SFD aims to be a comprehensive and enabling strategic partner for sustainable economic development in developing nations, Al-Marshad said. Through its mission, the fund seeks to support steady economic development by providing financial, technical, and human resources, and leveraging the strengths of Saudi Arabia to meet the needs of its partners.

 Strong Global Footprint

Over five decades of its developmental journey, the SFD has provided support for over 800 development projects and programs, with a total value exceeding US$20 billion. These projects encompass a wide range of sectors, including social infrastructure such as education, healthcare, water, and urban development, as well as the transportation and communication sector, covering roads, airports, seaports, energy, agriculture, industry, and mining.

The fund has established a strong global footprint, spanning across many regions. Its commitment to supporting developing countries is evident in its extensive portfolio, encompassing over 433 projects and programs across 47 African nations, for example. These initiatives aim to bolster infrastructure, enhance food and water security, and improve healthcare services.

SFD activities have also extended to 31 countries in Asia and the Pacific, funding more than 271 developmental projects and programs in vital sectors. Venturing further, the fund’s impact resonates in the Americas and the Caribbean, where it has supported 21 developmental projects and initiatives in 11 countries. Additionally, four countries in Eastern Europe have benefited from SFD support, witnessing the realization of 14 projects aimed at driving progress and prosperity.

 Pioneering Projects for Sustainable Progress

One of the standout initiatives presented by the Saudi government and facilitated by the SFD is the Saudi Program for Digging Wells and Rural Development in Africa. Launched in 1981 during the Islamic Summit Conference in Makkah, this initiative, supported by a generous grant, was envisioned to combat drought and desertification, bolstering water security in Africa. Across its ongoing phases, 19 African nations and over 5 million individuals have benefited from the program, with the establishment and equipping of more than 8,800 water facilities, amounting to a total cost of US$330 million.

The SFD has catalyzed significant positive transformations in beneficiary countries through its developmental projects. Through enhancing infrastructure, advancing transportation networks, supporting agriculture and food security, and developing renewable energy sectors, industry, and mining, the fund’s impact is far-reaching and impactful.

 Vision for Sustainable Development

At the core of its operations, the SFD upholds a set of fundamental values, including a commitment to sustainable development through projects that aim to enhance economic and social stability. Through close and effective partnerships with beneficiary nations, the fund works to ensure the optimal realization of its initiatives. Innovation is key, with the fund striving to adopt cutting-edge technologies and practices to ensure the sustainability and efficacy of its projects.

The SFD stands as a pioneering model in international development financing, embodying the Kingdom’s commitment to supporting developing nations and achieving sustainable development. With its diverse projects and innovative programs, the fund continues to have a positive impact on the lives of millions worldwide, bolstering its active role in sustainable development towards a flourishing future for generations to come.