The Saudi Fund for Development to finance agricultural, educational, and energy initiatives, enhancing Serbia’s long-term sustainability and global competitiveness

Serbia has taken a significant step towards bolstering its key sectors, signing a $205 million loan agreement with the Saudi Fund for Development (SFD). The agreement, marked by three major projects, is set to enhance Serbia’s agriculture, education, and energy infrastructure. These developments promise to create new jobs, stimulate economic growth, and position Serbia more favourably on the global stage.

The loan agreement was formalised in Belgrade, with Sultan Al-Marshad, CEO of the Saudi Fund for Development, and Sinisa Mali, Serbia’s Deputy Prime Minister and Minister of Finance, signing the deals. Ali Al-Dossary, Saudi Arabia’s Deputy Ambassador to Bosnia and Herzegovina, also attended the signing. For Serbia, this marks the first significant move following last year’s memorandum of understanding between the two nations, which laid the groundwork for future capital projects.

Mali expressed deep gratitude for Saudi Arabia’s support, describing the agreement as a “first concrete step” in Serbia’s long-term development ambitions. “The projects for which this money is intended will contribute to the creation of new jobs, strengthening of our economy, and better positioning Serbia in the world scientific community,” Mali said. He also highlighted how the collaboration between Serbia and Saudi Arabia will lead to the realisation of significant infrastructure projects that are crucial for the country’s future prosperity.

The $205 million loan will finance three key projects. First, $75 million will be allocated for the “Strengthen Irrigation Infrastructure in Different Areas Project,” which aims to improve water management in Serbia’s agricultural regions. The initiative will involve constructing new water pumping stations, rehabilitating existing canals, and developing a modern irrigation network spanning 230 km. This project targets rural areas like Novi Slankamen and Jasenica Kapi and is expected to increase agricultural productivity by ensuring efficient water distribution, especially during drought conditions.

The second project, valued at $65 million, will fund the construction of the Bio4 Campus in Belgrade. This innovative scientific research centre will focus on biotechnologies, featuring six faculties and nine scientific institutes, along with advanced laboratories. Among the centre’s facilities will be a biosafety level 3 lab, aimed at fostering interdisciplinary collaboration in fields such as biology, medicine, and wastewater research. The campus is expected to serve as a hub for scientific innovation, enhancing Serbia’s role in global scientific research.

The third and final project, also worth $65 million, is dedicated to expanding Serbia’s energy infrastructure. It will involve the construction of a new 400 kV transmission line and the upgrading of existing substations. This development will significantly improve the reliability of Serbia’s power supply and help integrate the country into the European electricity market through the Trans-Balkan Electricity Corridor. By enhancing energy security and stability, the project will further Serbia’s goal of becoming a key player in the regional energy landscape.

Al-Marshad, CEO of SFD, emphasised the importance of these projects for Serbia’s socio-economic development. “Supporting sustainable development through strategic funding in infrastructure and education is central to our mission,” he noted. “These projects will help create lasting benefits for the Serbian people and contribute to their socioeconomic development.” He also reiterated SFD’s commitment to fostering innovation and enhancing agricultural productivity in line with the UN’s Sustainable Development Goals.

This recent agreement builds on a strong foundation of cooperation between Saudi Arabia and Serbia. In November 2022, Al-Marshad hosted Sinisa Mali in Saudi Arabia, where the Serbian official was briefed on SFD’s development initiatives in various countries. During this visit, both sides discussed opportunities for Serbia to strengthen its development sector and boost bilateral ties through the fund’s support.

SFD, which recently celebrated 50 years of advancing global development, has expanded its operations to 11 new countries, including Serbia. Over the past five decades, the fund has financed over 800 projects across more than 100 countries, with a total investment of $20 billion. These projects span a wide range of sectors, from education and health to transportation and energy.

The partnership between Saudi Arabia and Serbia formalised through this loan agreement, marks a significant milestone in their relationship. The funding will not only enhance Serbia’s infrastructure but also strengthen its scientific community, agricultural productivity, and energy resilience. By investing in such critical sectors, Serbia is well-positioned to accelerate its economic growth and secure a more sustainable future.