Saudi Industrial Development Fund (SIDF) was established in 1394 AH as a government financial institution effectuating development policies and programs towards the Kingdom’s industrial transformation.
Saudi Arabia has witnessed steady industrialisation attributed to the industrial sector and the support it receives from the government as the country intends to achieve its strategic and economic goals. Aside from the implementation of required infrastructure, construction of Jubail and Yanbu industrial cities as well as other industrial cities in various regions of the Kingdom, one of the essential efforts done by the government is the establishment of the Saudi Industrial Development Fund (SIDF).
SIDF plays a critical role in the digital transformation goals of the Saudi Vision 2030, the Kingdom’s long-term aspiration that includes growing and diversifying the economy as well as developing public service sectors such as health, education, infrastructure, recreation, and tourism. With this tall order, SIDF has partnered with the ERP software leader SAP to deliver digitalisation, specifically, to the industrial sector.
By working with an SAP channel partner in Saudi Arabia, 70 legacy applications in the core business will be replaced by real-time digital dashboards, including one for customer relationship management. SIDF has gone the paperless route via the fully automated system enabling fully digital and electronic approvals.
Leveraging the Tamkeen platform, SIDF has delivered automation resulting in 60 percent less time to process loan applications and 70 percent less time for loan disbursements. Tamkeen, a semi-governmental technology-based company, provides products and solutions that boost digital transformation of Saudi Arabia.
Abdulaziz Al-Ghufaili, Vice President of Technology at SIDF stated:
“As the Kingdom’s industrial sector grows, SIDF needed to migrate 40 years’ worth of data to one digital platform to deliver the optimal financing for the Kingdom’s industries.”
“Now, we have full and real-time visibility on our loan processes, leading to more streamlined loans and a more competitive industrial sector aligned with Saudi Vision 2030,” he added.
Aside from automating loan processes, SIDF has also deployed intelligent technologies such as integration of automatic credit check and the automatic banking interface Bank Communication Manager. Advanced Java, AngularJS, Business Intelligence/Business Objects, Json, and UI5 are now also being utilised to anticipate, meet, and exceed the needs of clients.
SIDF’s success story is the culmination of its recent Gold SAP MENA Quality Award 2019 for the Business Transformation Category.
Taha AlMadani, Head of Customer Success and Active Quality Management at SAP Middle East North commended:
“SIDF shows how financial organizations can digitally transform into Intelligent Enterprises and continue the commitment of supporting the industry to reach their full potential.”
SIDF and Saudi Vision 2030
As the primary financial enabler of Saudi Arabia’s industrial transformation, SIDF is expected to lead the development of the local industrial sector as well as be on top of the latest developments. For the past four decades, SIDF has been empowering Saudi Arabia’s industrial sector that has built an SR184 billion ($49 billion) industrial market. Currently, the Kingdom nabs 60 percent of the Gulf Cooperation Council’s (GCC) industrial market while achieving strong industrial growth with Invest Saudi amounting to SR 184 billion, growing 6 percent per year.
Along with the National Industrial Development and Logistics Program (NDLP) and the National Transformation Program 2020, SIDF is entrusted to drive Vision 2030 through competitiveness and sustaining strategic initiatives of the Kingdom’s industry, mining, energy, and logistics sectors.
Through NDLP, SIDF has introduced a new package of financial products and services in relation to achieving the Vision 2030’s objectives. NDLP contributes by adding SR 1.2 billion to GDP, generating jobs, improving the balance of payments, and strengthening the local content.