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Saudi Arabia’s Public Investment Fund (PIF) has announced that it has, together with the National Infrastructure Fund (Infra), introduced a new Contractor Financing Programme to strengthen the construction sector’s finances.

In a statement, the PIF said the programme would provide contractors with diverse, tailored financing solutions, foster a more integrated, dynamic and transparent construction ecosystem, and promote projects structured to improve contractor cashflows.

Despite record levels of contract awards in Saudi Arabia last year, construction companies continue to face financial challenges when taking on new projects. Cash flow is the root cause of many of these difficulties, and if the problem is alleviated, the industry should be able to mobilise and deliver projects more quickly.

Separately, the National Development Fund’s Board of Directors, under the chairmanship of Prince Mohammed Bin Salman Bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, has appointed Minister of Economy and Planning Faisal Alibrahim to be chairman of Infra.

In a statement, Alibrahim described Infra as the kingdom’s lead development financing partner for infrastructure, catalysing higher levels of private sector investment to accelerate the delivery of critical infrastructure projects.

The February MEED Business Review Agenda includes:

> Rethinking how Saudi projects are delivered
> Constructing a sustainable future
> Sustainable design is key to cutting carbon emissions