Guidelines and policies:
A. Procedures and documentation
1. Preliminary acceptance of the project and application review
The project submitted for financing will be accepted in principle after confirming the completion of the requirements in accordance with the conditions of the targeted sector.  Noting that the initial approval does not mean approval of the loan.

2. Final acceptance of the project’s and financing approval
In the final acceptance phase, a detailed study of the project will be conducted, including an assessment of the feasibility and risks in the project. After completion of this process, the applicant will be notified of the final decision.

B. Lending policy
PSF provides long-term loans with preferential lending terms to support the continuation and completion of projects in the targeted sectors.

Lending limit
PSF provides financing to target sectors up to 50% of the project costs approved by the fund up to SAR 500 million for the project.

C. Obligations of the borrower:
Project owners must comply with the following: 
  • Opening a dedicated bank account for the project in a commercial bank.  This is to deposit the loan amount and to manage the project funds
  • Compliance with the terms and conditions of the contract and implementation of the project stages in accordance with the approved plans, the objectives and project  activities
  • To cooperate fully with the bank and PSF (or its representative), to monitor the progress of the project

D. Loan disbursement:
The loan will be disbursed in installments based on the completion of the work, and in accordance with the approved disbursement policy.

E. Appeal on loan financing decision:
In case an application is declined, the applicant may submit an updated application to PSF  for reconsideration, together with justifications, within 30 days from decline notification.

F. General conditions:
In addition to complying with all government charters and regulations, the borrower should not have a conflict with any existing government policies and programs.
  • PSF has the full right to accept or reject any project, even if it may serve its objectives
  • PSF may request a detailed economic feasibility study of the project at any time
  • Each project should comply with the Saudization rates approved by the Ministry of Labor and Social Affairs during the operational phase
  • Each project should comply with local content guidelines during the construction and operation phase