Saudi Arabia offers loans to boost renewable energy
In order to move the economy’s dependency from crude oil, Saudi Arabia has started offering loans for renewable energy projects and manufacturers of renewable energy components. A programme under the name Mutjadeda was formed, where the Saudi Industrial Development Fund opened applications for the same.
The programme aims to provide loans to the tune of SAR1.2bn ($28bn), depending on a company’s ownership, targeting renewable-energy component manufacturers as well as independent production projects.
The fund’s director-general Ibrahim Almojel said that the programme is open to businesses falling other various industries such as manufacturing, agriculture, retail etc. who plan to deploy renewable energy.
Moreover, the country’s sovereign wealth fund plans to invest in renewable energy facilities and factories to make components for solar and wind farms.
The objective of this programme is to find new sources of energy and to be less dependent on oil, said Ahmed AlGwaiz, the industrial fund’s vice president of risk management.
Talks are already on with large retailers and large agriculture producers interested in using renewable energy.
Currently, Saudi Arabia is also using natural gas and other alternatives to free up crude that it currently burns to generate power. With such monetary incentives, Saudi Arabia has shown its dedication to reducing carbon footprints and fighting climate change by adopting green and renewable sources of energy.