Naf Feed Industries announced that it has secured SAR 7 million in financing from the Saudi Industrial Development Fund (SIDF) as part of its strategic move to strengthen its position in the Kingdom's food and agricultural sector. This agreement, announced on the Saudi Stock Exchange (Tadawul), is part of the company's ambitious plan to refinance its second production line for poultry and livestock feed.
Financing details and repayment schedule
According to the company's official statement, this loan aims to achieve an annual production capacity of 244,800 tons, reflecting the company's desire to meet growing demand in the local market. The loan repayment schedule has been agreed upon over a convenient period, with repayments to be made in 10 semi-annual installments. The repayment period is scheduled to begin after the grace period ends, specifically on February 15, 2027, and conclude on August 15, 2031, as per the schedule agreed upon with the fund.
Guarantees provided and assets pledged
To safeguard the fund's rights, Naf Company provided a robust set of guarantees reflecting the financial strength of the company and its shareholders. These guarantees included promissory notes for the full loan amount, as well as personal guarantees from major shareholders covering 100% of the loan. The agreement also included a mortgage on all assets of the factory, including machinery, equipment, buildings, and existing and future construction on the leased land in Al-Rass Governorate. Furthermore, a plot of land owned by the Chairman of the Board, Fayez Dhaar Al-Harbi, in Riyadh Al-Khabra Governorate in the Qassim Region, was also mortgaged.
The role of the Industrial Fund in supporting Vision 2030
This financing comes in the context of the pivotal role played by the Saudi Industrial Development Fund as one of the main financial enablers of the National Industrial Development and Logistics Program (NIDLP), one of the most important programs of the Kingdom’s Vision 2030. Through these loans, the Fund seeks to enable the private sector to raise its operational efficiency and increase its contribution to the gross domestic product, especially in vital sectors that achieve self-sufficiency.
Strengthening national food security
This step is particularly important given the animal feed sector, which is the backbone of the Kingdom's livestock industry. Expanding local feed production directly contributes to supporting the Kingdom's food security strategy, as the availability of high-quality feed at competitive prices leads to more stable poultry and red meat prices, reduces reliance on imports, and strengthens the Kingdom's economic and food independence.
Al-Qassim region: The Kingdom's food basket
The geographical dimension of this project cannot be overlooked, as the company's facilities are located in the Qassim region, known as the "breadbasket of the Kingdom." The presence of industrial projects supporting agriculture and livestock in this region enhances economic integration between regions, creates new job opportunities for local residents, and strengthens local supply chains, making the expansion of "Naf" a significant contributor to both the regional and national economies.
