Qassim Cement Signs SAR 400M SIDF Financing Deal
Qassim Cement Company has signed a financing agreement worth SAR 400 million (about USD 107 million) with the Saudi Industrial Development Fund to support the construction of a new production line at its main plant in the Buraydah region. The deal was completed on 13 August 2026 and disclosed through Tadawul (Saudi Exchange).
The financing carries a nine-year term, made up of a two-year grace period followed by seven years of repayments. It will fund a fourth production line at the plant, designed to produce 10,000 tonnes of cement The new line is planned to replace certain existing lines while improving energy efficiency and environmental performance.
the fund's financing is backed by guarantees including a promissory note, the assignment of insurance documents for the new project in favour of the fund, and the pledging of project-related assets. The company plans to combine the SIDF facility with Sharia-compliant credit facilities from commercial banks to cover total funding needs and reduce overall financing costs.
Why it matters
A separate Sharia-compliant credit facility of SAR 1.5 billion from Saudi National Bank, with a 10-year tenure, is also linked to funding the fourth line and working-capital needs, distinct from the SIDF facility.
The project supports the expansion and modernization of domestic cement production, directly serving Saudi Arabia's construction sector through increased output from the Buraydah plant. Greater local capacity can help meet demand from ongoing building and infrastructure activity across the Kingdom, while the focus on energy efficiency reflects a wider push toward cleaner industrial operations.
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