Conditions for Specialized Loans in the Agricultural Development Fund

Conditions and Required Documents for Obtaining a Loan to Finance an Agricultural Project

Feasibility Study

A comprehensive economic feasibility study must include the technical and marketing specifications of the project. The study must be approved by a licensed consultancy office.

Ministerial License

A license to establish the project from the Ministry of Agriculture or the Ministry of Commerce and Industry. A municipal license is also required if the land is located within an urban area.

Land Possession Document

Documents such as allocation decisions, title deeds, government lease contracts, or lease contracts that comply with the fund's conditions must be provided.

Title deeds issued by notaries must be based on valid foundations (e.g., adjudicated ownership deeds or grants issued per regulations).

Lease contracts must include an official copy of the adjudicated ownership deed or title deed.

Land Distribution Decision

The decision must be issued in accordance with the Land Distribution Regulations.

Land Sketch

A detailed sketch of the land is required.

Personal Identification

A valid personal identification card is required, and the applicant must be at least 21 years old.

Loan Repayment

Any due installments on the applicant or their guarantors from previous dealings with the fund must be cleared.

Power of Attorney

A notarized power of attorney meeting the fund’s requirements must be provided if the application is made through a representative. The text should explicitly authorize the representative to apply for loans, sign contracts, receive funds, and perform all necessary actions on behalf of the applicant.

Document Copies

Copies of all documents must match the originals, certified by the issuing authority or the Agricultural Development Fund.

Guarantees

Necessary guarantees must be provided, such as:

Bank guarantee

Real estate guarantee

Personal guarantee (up to SAR 500,000)

Women’s Loan Conditions

The land must be owned by the applicant through a legitimate title deed or allocation decision issued by the Ministry of Agriculture.

A power of attorney meeting the fund’s terms must be provided, authorizing the representative to perform all necessary actions, including applying for loans and signing contracts.

Engineering Plans

Comprehensive engineering plans for the project must be submitted.

For Greenhouses

A certificate from a licensed laboratory confirming the water’s suitability for health standards.

A certificate from the Ministry of Water confirming that the project is far from sewage sources and that irrigation water is uncontaminated.

A well-drilling permit if applicable.

For Poultry Projects

Compliance with distance requirements set by the Ministry of Agriculture is mandatory. Additionally, a contract with a slaughterhouse must be provided for poultry meat production projects.

For Agricultural Factories and Slaughterhouses

Detailed price quotations for all project components, excluding buildings and operational costs, must be provided.

For Companies

Companies must submit the following:

Articles of Incorporation

Commercial registration

The last two financial statements

A list of board members

A letter from the board of directors requesting the loan

A letter from the board authorizing a representative to sign contracts and liaise with the fund

A letter from the Ministry of Human Resources specifying the Saudization rate