The Saudi Fund for Development (SFD) has signed a USD 15 million development loan agreement with the Republic of Palau, marking the fund’s initial partnership in the Pacific island nation. The accord aims to bolster Palau’s local economy and support sustainable development initiatives.
The agreement was formalized in Ngerulmud, Palau’s capital, by H.E. Sultan Abdulrahman Al-Marshad, Chief Executive Officer of the SFD, and H.E. Surangel S. Whipps Jr., President of the Republic of Palau. This collaboration represents a new phase of development assistance for Palau.
The USD 15 million loan will be disbursed through the National Development Bank of Palau. Its primary objective is to finance projects led by Palauan developers, businesses, and entrepreneurs, aligning with the nation’s economic priorities. The funds are intended to stimulate grassroots economic growth and support high-impact initiatives, including affordable, climate-resilient housing.
President Whipps Jr. expressed appreciation for the support, stating that the agreement focuses on strengthening the Palauan economy. He noted that channeling the financing through the National Development Bank would enable local developers, businesses, and entrepreneurs to launch projects, create jobs, attract investment, and retain more economic value within Palau. He also emphasized that prioritizing resilient housing would build stronger communities and provide future opportunities for young Palauans.
Mr. Al-Marshad of the SFD highlighted the organization’s pride in its first collaboration with Palau. He affirmed that by improving access to crucial funding, the SFD seeks to empower local entrepreneurs and contribute to a resilient future for the Palauan populace. He added that the agreement underscores the SFD’s broader mission to foster prosperity across island nations.
The SFD has a long-standing commitment to Small Island Developing States (SIDS), having previously supported development projects in 18 island nations across the Caribbean and Pacific regions. Established in 1974, the SFD provides concessional financing to developing countries, contributing to social and economic growth globally, with a focus on strengthening economic resilience and expanding access to essential services.
Source: Original
