Saudi Arabia to offer loans for developing Renewable Energy
Saudi Arabia will start offering loans for renewable energy projects and manufacturers of renewable-energy components as the kingdom seeks to diversify its economy away from crude oil.
The Saudi Industrial Development Fund opened applications for the program, called “Mutjadeda”, on Sunday. The program will give loans of as much as 1.2 billion riyals, depending on a company’s ownership, targeting renewable-energy component manufacturers as well as independent production projects. The fund will also offer to finance for firms in other sectors that want to start using such energy.
The world’s largest oil exporter is working to develop new industries to shake off its dependence on crude.
The country’s sovereign wealth fund plans to invest in renewable energy facilities and factories to make components for solar and wind farms. Saudi Arabia also wants to use more natural gas and other alternatives to free up crude that it currently burns to generate power.
The fund’s role is to discover new sources of energy to be less dependent on oil and to enable the manufacturing sector to continue its progress. Loans will be available for Saudi or foreign-owned companies.
The fund has already had discussions with large retailers and large agriculture producers interested in using renewable energy.