The Saudi Fund for Development was established by Royal Decree in the month of Sha'ban 1394 AH (1974) and began its operations in the month of Safar 1395 AH (1975). At the time of its inception, the Fund's capital amounted to 10 billion Saudi Riyals; however, due to the developing countries' increasing need for assistance in order to implement development projects, the Fund's capital has been augmented three times, and in 1991 totalled 31 billion Saudi Riyals. Despite the fact that the Fund has been operating for a relatively short time, it has made great strides in the area of international development co-operation. The Fund now contributes to the financing of 3750 projects in 71 countries, consisting of 41 African countries, 25 Asian countries, and five countries in other parts of the world.
The loans are without conditions
Funds are made available quickly and easily
Repayment terms are generous (up to 50 years with a 10-year grace
period)
The outright grant component of such loans can amount to 60% of
the total
The cost of loans is generally 1%
