Saudi Arabia to supply long-term loans for listed companies

18 January, 2021
Saudi Arabia's Job Support Fund signed a handle Tadawul to supply long-term loans for listed companies on a bid to energy economic growth and inspire more listings.

Beneath the agreement, the fund provides financing options to private sector companies in the healthcare, education and property industries, the kingdom's Ministry of Finance said in a declaration on Sunday.

"The agreement plays a part in bolstering the increase of financing limits for the listed companies in assignments in the sectors that the Jobs Support Fund Initiative targets, to be able to encourage these companies to create new jobs in the targeted sectors and also to encourage unlisted companies to become listed," it added.

The agreement was signed by Fahad Al-Saif, chief executive of the National Debt Operations Centre and Khalid Al-Hussan, leader of the Saudi STOCK MARKET.

The Assignments Support Fund, which is supervised by the Ministry of Financing, focuses on providing financing to select sectors. It was create within the kingdom's financial stimulus measures with first capital of 10 billion Saudi riyals ($2.67bn)

Saudi Arabia has introduced different stimulus actions to cushion the economy from the impact of the coronavirus pandemic.

This past year, the Arab world's second-largest economy unveiled 142 stimulus initiatives worthwhile 214bn riyals to supply support amid the pandemic.

In November, the Saudi Central Lender expanded its loan deferral programme until the end of the primary quarter of 2021 in order to assist affected businesses.

The regulator said your choice would allow it to keep to empower the financial sector to play its role in supporting micro, small and channel enterprises, contribute to economic growth and maintain employment in the private sector.