The largest solar project in Saudi Arabia will be financed with $1.63 billion

The Saudi National Development Fund (NDF) has disclosed its commitment to finance one of the world's most significant renewable energy initiatives, marking a historic milestone within the country. In a landmark move, the National Development Fund is set to extend a substantial loan of $1.63 billion (SAR 6.1 billion), complemented by the Saudi National Infrastructure Fund's pledge of $453.3 million (SAR 1.7 billion) to underwrite this ambitious solar project located in Shuaiba, within the Makkah Al-Mukarramah region.

Further fortifying this financial endeavour, a consortium comprised of local and international banks has collaborated, resulting in a cumulative loan value of SAR 6.1 billion. This financial undertaking is in alignment with the core objectives of the National Infrastructure Fund, currently in construction, as it endeavours to expedite the realization of strategic infrastructure projects throughout the kingdom, thereby generating enduring developmental impacts. Moreover, this initiative strengthens partnerships with both local and international banks, significantly contributing to the diversification of funding sources for vital infrastructure projects spanning crucial sectors of the nation's economy. Diversifying the energy mix is a pivotal focus of this project's financing, reflecting the Fund's commitment to supporting the Saudi Green Initiative, renewable energy projects, and the overarching goals of Saudi Vision 2030 in diversifying energy sources.

Notably, the financing of the Shuaiba project represents a significant milestone, being the inaugural funding by the National Infrastructure Fund for a project involving Saudi Aramco. The fund takes pride in its maiden support for an investment project announced by "Badil," a company wholly owned by the Public Investment Fund. The Shuaiba project, a collaboration between Saudi Aramco, Badil Company, and ACWA Power, aims to establish the largest solar photovoltaic power plant in the kingdom, with a total value of approximately $2.2 billion (SAR 8.3 billion). Expected to commence commercial activities in 2025, the facility is anticipated to generate over 2.6 gigawatts of clean energy, supplying electricity to around 450,000 households. Established by royal order, the National Development Fund plays a pivotal role in elevating the performance of development funds and banks in support of the nation's developmental objectives.