The Saudi Fund for Development (SFD) has signed three loan agreements with the Republic of Serbia, amounting to $205 million, to support major projects in agriculture, education, and energy. This move marks the SFD’s first entry into Serbia, aiming to bolster the country’s long-term economic growth. The agreements were signed by Sultan Al-Marshad, CEO of the SFD, and Serbia’s Deputy Prime Minister and Minister of Finance, Siniša Mali, at a ceremony attended by Saudi Arabia’s Deputy Ambassador to Bosnia and Herzegovina, Mr. Ali Aldossary.
This latest partnership builds on last year’s Memorandum of Understanding between the two nations, further cementing the relationship between Saudi Arabia and Serbia. The funds will be channelled into three key infrastructure projects, each designed to foster socio-economic development in Serbia.
Commenting on the deal, Siniša Mali expressed gratitude for the financial support, saying, “It is a great pleasure to sign these important agreements with the Saudi Fund for Development, which marks the first concrete step following the Memorandum of Understanding. These projects will contribute to creating new jobs, strengthening our economy, and improving Serbia’s position in the global scientific community. The agreements also solidify our long-term partnership with the Kingdom of Saudi Arabia.”
The first of the three projects, with a $75 million investment, will focus on enhancing irrigation infrastructure in several key agricultural areas. This includes constructing new water pumping stations, rehabilitating outdated canals, and developing a modern irrigation network spanning over 230 kilometres. The project aims to improve water management and increase agricultural productivity, particularly in regions like Novi Slankamen and Jasenicke Kapi. It is hoped that this investment will improve Serbia’s resilience against drought and secure efficient water distribution across key farming areas.
The second project, valued at $65 million, will finance the construction of the Bio4 Campus in Belgrade, a cutting-edge research facility dedicated to advancing biotechnologies. The new campus will be home to six faculties, nine scientific institutes, and state-of-the-art laboratories, including a biosafety level 3 lab at the University of Belgrade. The Bio4 Campus is expected to foster interdisciplinary research in fields like biology, medicine, and wastewater research, enhancing Serbia’s global scientific standing.
The final $65 million project will focus on improving Serbia’s energy infrastructure. A new 400 kV transmission line will be built, and existing substations will be upgraded to enhance the reliability of Serbia’s power grid. This will also facilitate the country’s integration into the European electricity market via the Trans-Balkan Electricity Corridor. The project is expected to improve energy security and create a more stable power supply for both domestic and regional markets.
SFD CEO Sultan Al-Marshad highlighted the significance of the agreement, stating, “Supporting sustainable development through strategic investments in infrastructure and education is core to our mission. This partnership with Serbia reflects our commitment to promoting innovation, enhancing agricultural productivity, and strengthening energy security. These projects will deliver long-term benefits for the Serbian people and contribute to the country’s broader socioeconomic development.”
The Saudi Fund for Development, which serves as Saudi Arabia’s official development arm, has funded over 800 projects in more than 100 countries, with a total investment exceeding $20 billion. This year, the SFD celebrates its 50th anniversary, having recently expanded into 11 new countries, including Serbia. The organisation continues to support sustainable development initiatives around the world.
