First multi-million loan by Saudi fund for projects in Serbia

• $75m for irrigation project
• $65m for science research
• Serbia ‘grateful for support’

The Saudi Fund for Development signed three development loan agreements this week with Serbia worth $205 million to support agriculture, education and energy. 

The SFD, Saudi Arabia’s official overseas development fund, will give Serbia $75 million for an irrigation project, $65 million for the Bio4 Campus research institute in Belgrade and $65 million for a transmission system operator to help the electricity grid.

Serbia’s deputy prime minister and minister of finance, Siniša Mali, said: “We are grateful for the support. The projects for which this money is intended will contribute to the creation of new jobs, strengthening of our economy, and better positioning of the Republic of Serbia in the world scientific community.”

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The SFD has financed more than 800 projects in over 100 countries, with total funding of $20 billion, the state Saudi Press Agency said. 

Serbia is one of 11 new countries to receive loans from the fund so far in 2024. 

In April the fund signed a $67 million deal with the Oman Development Bank to finance startups, as part of a wider $150 million package of support for Oman provided by the Saudi government through the fund. 

Saudi Arabia is heavily focused on using venture capital to support startups inside the country as part of its economic development plan, but is also trying to support regional economies such as Oman and Egypt. 

The Saudi government also has a Cultural Development Fund that has been leading government support for the arts since 2021.