- What
- Soft loans for up to 50% of an industrial project’s cost; 24-month grace, tenor up to 10 years.
- Who
- Graduates of SIDF partner industrial incubators and SMEs qualified by MIMR programmes.
- From abroad
- Not stated on the programme’s site (checked October 2026) All programmes open to founders from abroad →
Checked · October 2026 · sidf.gov.sa/en/Initiatives/Industrial-Sector-Sup · How we check ↗
See SIDF Promising Factories Initiative (soft loans) on the map next to the other 116 programmes in Saudi Arabia — and filter the whole Gulf by type, deadline and equity.
Open the map →In detail
SIDF Promising Factories Initiative (soft loans) is a government soft-loan initiative (industrial) in Saudi Arabia. Soft-loan initiative of the Saudi Industrial Development Fund (SIDF, King Abdullah Financial District, Riyadh) that lets entrepreneurs with lower net worth obtain funding and start an industrial activity in National Industrial Strategy sectors. Through its Industrial Business Incubator Program, SIDF partners with incubators and accelerators to lend to their qualified industrial entrepreneurs; SMEs qualified by the Ministry of Industry and Mineral Resources' investment programmes are the second channel. Phase 1 (soft loans) funds up to 50% of the project cost, with 20% of the loan paid in advance, a grace period of up to 24 months and a tenor of up to 10 years; the client secures the rest of the project value. A second phase is to be announced.
- Amount
- Soft loan for up to 50% of the project cost
- 20% advance disbursement
- grace period up to 24 months
- tenor up to 10 years
- Terms
- No equity — soft loan
- Eligibility
- Entrepreneurs who graduate from SIDF partner industrial incubators, and SMEs qualified by MIMR investment programmes
- project in National Industrial Strategy sectors, economically feasible in SIDF’s evaluation and adding local content
- feasibility study and implementation plan
- the client secures the share of the project value the initiative does not finance
- Sectors
- Industrial sectors serving the National Industrial Strategy
- Benefits
- Funding up to 50% of the project cost
- 20% advance disbursement
- grace period up to 24 months
- tenor up to 10 years
- Status
- Active — applications through SIDF’s client portal (checked October 2026)
Is this for you?
Where is your company?
Are you open to giving equity?
We match them against what SIDF Promising Factories Initiative (soft loans) publishes.
A guide to the published criteria, not a decision — the programme selects.
What the source says
“Entrepreneurs who graduate from Industrial Incubators.”
“The program is designed to activate partnerships with incubators/accelerators to offer financial support to their qualified and eligible industrial entrepreneurs through soft loans (The Promising Factories Initiative, i.e., PFI).”
“Given that incubators/accelerators lack funding support for entrepreneurs, SIDF aims to bridge the financing gap by providing soft loans (PFI).”
“The Promising Factories Initiative is a sub-initiative Industrial Sector Support Initiative that aims to stimulate investment in National Industrial Strategy sectors by providing innovative lending and investment instruments that allow entrepreneurs with lower net worth to obtain funding and start their industrial activity.”
“Funding percentage: up to 50% of the project cost.”
“20% percent advanced disbursement of the loan amount.”
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Compare loans & guarantees in Saudi Arabia
| Cost | |||
|---|---|---|---|
| SIDF Promising Factories Initiative (soft loans)Soft loans for up to 50% of an industrial project’s cost; 24-month grace, tenor up to 10 years. | not published | No equity | Active |
| SME Bank (Small and Medium Enterprise Bank)Government SME bank; loans through partner banks, finance firms and crowdfunding. | not published | Loan | Active |
| Social Development Bank (SDB)Loans of SAR 50,000–500,000, repayment up to 9 years, grace period up to 12 months. | SAR 50,000–500,000 | No equity | Open |
| Kafalah — SME Financing Guarantee ProgramGuarantee of up to 80% of a bank loan; up to 90–95% under start-up and sector products. | not published | No equity | Active |
Highest amount in each programme’s own “What” line. Other currencies converted for sorting only (Gulf pegs; KWD, EUR, GBP approximate).
All loans & guarantees in Saudi Arabia → · Across the Gulf →
More programmes that take no equity →
Questions founders ask
What does SIDF Promising Factories Initiative (soft loans) offer?
Soft loans for up to 50% of an industrial project’s cost; 24-month grace, tenor up to 10 years.
Does SIDF Promising Factories Initiative (soft loans) take equity?
No equity — soft loan.
Can founders from abroad apply?
Not stated on the programme’s site (checked October 2026).
How do I apply?
Through its own application form — the Apply button on this page goes straight there.
Sources
Primary source · sidf.gov.sa/en/Initiatives/Industrial-Sector-Support-Initiative/Promis · LinkedIn · linkedin.com/company/saudi-industrial-development- · Checked October 2026