Saudi Arabia's development fund signed 13 loan agreements worth SAR1.77 billion ($472 million) with 11 countries during 2025, expanding its lending to three countries for the first time, its latest annual report shows.The Saudi Fund for Development (SFD) disclosed the figures on Thursday, October 22, detailing financing for infrastructure, energy, agriculture and public services across four regions. Suriname, the Solomon Islands and Barbados were added to its portfolio during the year.
Asia and the Pacific accounted for the largest regional allocation, receiving six loans valued at SAR855 million. Latin America and the Caribbean followed with three agreements worth SAR422.62 million, while Africa received two loans totalling SAR368.28 million and Europe secured two worth SAR120 million.
Social infrastructure dominated the commitments, attracting seven loans worth SAR1.11 billion, equivalent to 62.8% of annual lending. Energy projects received three loans totalling SAR337.5 million, or 19.1%, while transport and communications accounted for two agreements worth SAR176.25 million, or 10%.
Agriculture received one loan worth SAR143.29 million, representing 8.1% of the total. The distribution indicates that health, education and other social facilities were the fund's largest financing priority, ahead of electricity networks and transport connections.
Co-financing was another prominent feature of the year's activity. Nine loans covering eight countries, valued at SAR1.32 billion, were arranged alongside other financing partners. These agreements represented almost three-quarters of the fund's lending commitments for 2025.
Partners included the Islamic Development Bank, the OPEC Fund for International Development, the Asian Development Bank and governments of recipient countries. The projects associated with the jointly financed agreements carried a combined cost of SAR4.97 billion, substantially exceeding the Saudi fund's direct contribution.
The annual figures also mark a decline from 2024, when the fund signed 17 agreements with 13 countries worth SAR3.70 billion. That year's commitments included six loans for Latin America and the Caribbean and five for Asia and the Pacific, according to the fund's preceding annual report.
The comparison shows that the number of agreements fell by four, while their reported value dropped by more than half. The fund did not identify a single cause for the change in the figures released with its 2025 report.
The expansion into three additional countries nevertheless brought new projects into the lending programme. Barbados signed two agreements in July 2025 worth approximately $92.7 million, covering primary healthcare facilities and urban infrastructure improvements.
One Barbados agreement, worth $58.5 million, supports construction of two specialised primary care clinics and refurbishment of seven existing facilities. The other, valued at $34.2 million, finances the first phase of an urban renewal programme involving housing, water infrastructure, flood protection and neighbourhood improvements around Bridgetown.
The agreements were signed by SFD chief executive Sultan bin Abdulrahman Al-Marshad and Barbados Prime Minister Mia Amor Mottley, who also held the finance portfolio at the time. The projects are intended to improve access to essential services and strengthen infrastructure resilience.
The Solomon Islands entered the fund's lending portfolio in April 2025 through a $10 million renewable energy agreement. The financing supports construction of solar power stations with planned combined capacity of 35.5 megawatts, alongside energy storage infrastructure designed to reduce dependence on conventional generation.
That agreement was signed by Al-Marshad and the Solomon Islands' then finance minister, Manasseh Sogavare, with Prime Minister Jeremiah Manele attending the ceremony. The fund described the investment as support for the country's electricity infrastructure and development priorities.
Suriname became a borrower in February 2025 through a $20 million agreement for electricity generation, transmission and distribution improvements. The project includes network extensions serving Paramaribo and Nickerie, as well as connections for farms and industrial facilities.
The Suriname agreement was signed with then finance minister Kermechend Raghoebarsing. Project plans include approximately 50 kilometres of transmission lines, according to the fund's original announcement.
The Bosnia and Herzegovina agreements, signed in July, provided another example of the social infrastructure focus. Two loans worth a combined $32 million were allocated to a science and technology park and additional student accommodation in Foča. The larger agreement provided $19 million for the technology park, while $13 million was earmarked for the student housing project. Both agreements were signed with the country's finance and treasury minister, Srđan Amidžić.
Across its operations over five decades, the SFD said it had signed 808 development loans with 101 developing countries, representing cumulative commitments of SAR83.26 billion.
Topics
Spotlight