Almunajem receives SAR 11.6M first tranche of SIDF loan

The financing is guaranteed by promissory notes for the full financing value, as well as by a mortgage bond for all assets under the plant

Almunajem Foods Co. received today, Dec. 22, the first tranche of a loan granted by the Saudi Industrial Development Fund (SIDF), amounting to SAR 11.6M, out of the total financing value of SAR 97.3 million, which will be used to fund its foods processing plant in Jeddah.

In a statement to Tadawul, the company said the eight-year funding, which involved no related parties, offers a grace period of two years. It noted that the financing is guaranteed by promissory notes at the full financing amount, as well as by a mortgage bond for all assets held under the plant.

According to the company, the loan is aimed at obtaining long-term funding to partially finance its approved capital expenditure plan for the expansion of the foods processing facility in Jeddah.

The plant’s production capacity is 35,000 tons, with work currently underway to complete the final finishing stage. It is scheduled to commence the installation of manufacturing line equipment in Q1 2026, possibly starting commercial operations during Q2 2026.

Almunajem signed, in May 2024, a memorandum of understanding (MoU) with the National Industrial Development Center (NIDC) to cooperate on establishing a foods plant in Jeddah, according to data available to Argaam.

The MoU was also aimed at strengthening the strategic partnership with NIDC and related entities, in addition to exploring the industrial opportunities in the food sector.

The company's board of directors approved, in April 2024, the establishment of a new food plant worth SAR 157 million, with an annual production capacity of 35,000 tons of some poultry, red meat, seafood, and dairy products.