2005 News Story

Kingdom to extend soft loan to Azerbaijan

The Saudi Fund for Development (SFD) is extending a soft loan in the amount of SR67.5 million [U.S. $18 million] to the Republic of Azerbaijan. The funds, whose terms involve a 20-year repayment with a five-year grace period, will be used for infrastructure projects to supply potable water and electricity.

Saudi Arabia has helped Azerbaijan before, with for example loans for reconstruction of infrastructure damaged during the Armenian aggression, and SFD is currently funding the construction of schools in the Azeri capital city of Baku. The Jeddah-based Islamic Development Bank (IDB) has also been supporting Azerbaijan in infrastructure projects. A Saudi entrepreneur has invested in a major hotel project, and a group of 63 Azeri doctors arrived in the Kingdom recently, the third such group recruited to work at a number of Saudi health institutions.