1- The Saudi Industrial Development Fund enjoys public legal personality and financial and administrative independence, and is organizationally linked to the National Development Fund, hereinafter referred to as "the Fund."

2- The Fund applies modern banking management methods in accordance with the applicable professional standards.

3- The headquarters of the Fund is located in the city of Riyadh, and it has the authority to establish branches as needed.

The fund aims to support industrial and economic development in the Kingdom, in accordance with the approved strategies in this regard.

The Fund shall have all the necessary powers to achieve its objectives as stipulated in this Law; including the following:

1- Providing financing to private enterprises established in the Kingdom that operate in the fields of industry, mining, energy, industrial services, logistical and supportive services, technology development, and infrastructure; to establish new projects, expand their activities, manage their operations, replace their equipment, introduce modern methods, or acquire entities outside the Kingdom that operate in those fields for the purpose of transferring technology or integrating with the national industry in accordance with the regulations set by the Fund's Board of Directors.

2- Providing financing to existing enterprises outside the Kingdom that operate in the fields mentioned in paragraph (1) of this article, which are owned or contributed to by Saudi investors; for the purpose of transferring technology or integrating with the national industry, in accordance with the regulations set by the Fund's Board of Directors.

3- Providing economic, technical, or administrative advice to enterprises operating in the fields mentioned in paragraph (1) of this article.

4- Providing guarantees not exceeding (10%) of the Fund's paid-up capital.

5- Establishing and managing specialized academic training centers in the fields of finance, industry, energy, technology, mining, and logistics, and providing specialized training programs in these fields, in accordance with the regulatory procedures followed in this regard.

6- Lending and other forms of financing.

7- Accepting mortgages and other guarantees for fulfillment.

8- Owning assets of all kinds - whether movable or real estate - and selling and mortgaging them.

9- Borrowing, issuing sukuk, bonds, and other debt instruments in agreement with the Ministry of Finance.

10- Engaging in any other activity or work approved by the Fund's Board of Directors that achieves the Fund's objectives and is consistent with its nature of work.

First: The government's policies, programs, and strategies in the fields of industry, energy, mining, technology, logistics services, and infrastructure form the fundamental principles of the Fund's activities in supporting and encouraging industry and other economically viable activities in the Kingdom. The Fund must cooperate with the relevant government agencies and institutions to achieve this, coordinating its activities with theirs. Additionally, when financing establishments and their projects, it must consider the following:
1- Conduct a comprehensive assessment of the economic feasibility of the project for which funding is requested, taking into account the soundness of its management to verify its viability from economic, financial, and technical perspectives.
2- When examining the projects for which funding is requested, it should consider whether the total funding required for the project has been reasonably determined and whether the size of its assistance represents a reasonable percentage of the project's total funding needs.
3- Obtain appropriate guarantees from the project owners for the funding requested that are commensurate with the size and type of financing to be provided.
4- Monitor the implementation of the projects it finances to ensure they are progressing according to the specified plan, providing advice to the establishments regarding the problems and difficulties facing these projects, with this monitoring conducted through inspection visits.
5- Its loan should not exceed (50%) of the total funding required for the project, and its Board of Directors may raise this percentage to (75%) in less developed areas or cities as well as in strategic projects.
6- The repayment period for the loan it provides should not exceed (fifteen) years, and its Board of Directors may extend this period to (twenty) years in less developed areas or cities as well as for strategic projects.
7- It should charge a financial fee for the services it provides, and its Board of Directors will set the criteria based on which the financial fee is determined.

8- Its Board of Directors should set a maximum limit for the amount of loans the Fund provides to any project.
Second: The Fund may invest any surplus liquidity—if available—in investments within or outside the Kingdom until these funds are utilized in its operations. The Fund must ensure the availability of liquidity and security factors in these investments, and the income generated from these investments will be added to the Fund's resources.

The capital of the fund is five hundred million Riyals, which will be paid by the Ministry of Finance and National Economy gradually as agreed upon with the fund, and it may be increased by a decision of the Council of Ministers.

• Loans extended by the Fund shall enjoy the same benefits and guarantees as those of the public treasury rights and shall be collected in the same manner as other public funds and in accordance with the rules governing collection of public funds.

• The Fund shall have a Board of Directors chaired by the Minister of Industry and Mineral Resources, with membership including a representative from the National Development Fund, and four other members appointed by the Council of Ministers based on the recommendation of the Minister of Industry and Mineral Resources for a term not exceeding four years.

• The Fund’s Board of Directors shall meet upon a call by its Chairman. A vice chairman shall be elected from among its members to act on the Chairman’s behalf in his absence. A board meeting shall be valid only if attended by the majority of members, and its decisions shall be passed by majority vote of attending members. In case of a tie, the Chairman of the meeting shall have the casting vote.

The fund shall have an Executive President who is appointed to his position and relieved from it by a decision of the Board of Directors. The Board of Directors shall determine his powers, responsibilities, salary, and other financial benefits. The President shall represent the fund before government entities and other relevant institutions, as well as other entities inside and outside the Kingdom, and he may delegate other employees of the fund in this regard. He shall also represent the fund before judicial authorities, and in this matter, he may delegate other employees of the fund or others, as required by the interests of the work.

Without prejudice to the competencies of the National Development Fund, the Council is the authority responsible for outlining its general policy, within the limits of its law and related regulations, and it undertakes all tasks and powers that ensure the achievement of the Fund's objectives. For this purpose, it has the authority to take any decisions, procedures, measures, and others that it deems appropriate, specifically including the following:

• 1- Approving the strategies related to the Fund's activities, and the plans and programs necessary for their implementation, and raising any matters that require the completion of procedures in this regard.

• 2- Supervising the implementation of the tasks assigned to the Fund.

• 3- Approving the organizational structure of the Fund.

• 4- Approving the administrative and financial regulations that the Fund operates under, as well as other internal and technical regulations and procedures necessary for its operations.

• 5- Approving lending and other forms of financing.

• 6- Approving the acquisition of assets of all types - whether movable or real estate - and their sale and mortgage.

• 7- Approving the establishment of branches of the Fund within the Kingdom as needed.

• 8- Approving the Fund's budget.

• 9- Reviewing periodic reports on the progress of work in the Fund and making necessary decisions regarding them.

• 10- Proposing draft laws related to the Fund's competencies and suggesting amendments to those in effect, in preparation for submitting them to complete the legal procedures.

• 11- Approving the conclusion of agreements and contracts, according to the established legal procedures.

• 12- Setting standards for determining the financial compensation for the services provided by the Fund.

• To achieve these competencies, the Council may form permanent or temporary committees from its members or others, assigning them tasks it deems appropriate, specifying in the formation decision of each committee its chair, members, competencies, and the rewards for its chair and members. Each committee may seek assistance from whomever it deems necessary to perform the tasks assigned to it.

• The Council may also delegate some of its competencies to any of its members, the Chief Executive Officer, or to any of the committees or employees of the Fund.