BELGRADE: Serbia has secured a $205 million loan from the Saudi Fund for Development (SFD) to bolster its agriculture, education, and energy sectors.
Three agreements were inked in Belgrade by Sultan Al-Marshad, CEO of SFD, and Sinisa Mali, Serbia’s deputy prime minister and finance minister, in the presence of Ali Al-Dossary, Saudi Arabia’s deputy ambassador to Bosnia and Herzegovina, as per a statement from the fund.
Mali expressed satisfaction with the agreements, noting that they represent the first tangible step following the signing of a memorandum of understanding last year aimed at developing and investing in capital projects.
“We are thankful for the support. The funds will be used for projects that will create new jobs, strengthen our economy, and enhance Serbia’s standing in the global scientific community,” Mali said.
The agreements will also strengthen the long-term partnership between Serbia and Saudi Arabia and facilitate the implementation and development of significant projects in Serbia.
The three projects include $75 million for the Strengthen Irrigation Infrastructure in Different Areas Project, $65 million for the Construction of the Bio4 Campus in Belgrade Project, and $65 million for the Development of Transmission System Operator (Phase 1) Project.
The first project aims to improve irrigation systems and water management in key agricultural areas by constructing new water pumping stations, rehabilitating existing canals, and developing a modern irrigation network over 230 km. It will target villages like Novi Slankamen and Jasenica Kapi, aiming to boost agricultural productivity and ensure efficient water distribution during drought conditions.
The second project will finance the construction of the Bio4 Campus in Belgrade, an innovative scientific research center focused on biotechnologies. The campus will include six faculties, nine scientific institutes, and advanced laboratories, including a biosafety level 3 lab at the University of Belgrade.
Designed to promote interdisciplinary innovation and collaboration, the center will bring together researchers, scientists, and professionals in fields such as biology, medicine, and wastewater research.
The third project will expand Serbia’s energy infrastructure by building a new 400 kV transmission line and upgrading existing substations, enhancing the reliability of Serbia’s power supply and integrating the country into the European electricity market through the Trans-Balkan Electricity Corridor.
Al-Marshad emphasized that supporting sustainable development through strategic funding in infrastructure and education is core to SFD’s mission.
“This partnership with Serbia highlights our commitment to fostering innovation, enhancing agricultural productivity, and improving energy security in line with the UN Sustainable Development Goals. The projects we are funding will create lasting benefits for the Serbian people and contribute to their socioeconomic development,” he said.
In November 2022, Al-Marshad hosted Mali in Saudi Arabia, where the Serbian official was briefed on SFD’s development initiatives in emerging nations. They discussed key opportunities in Serbia’s development sector.
Mali expressed gratitude for the Kingdom’s efforts, through SFD, to provide development support via various projects and programs in developing countries, which contribute to achieving sustainable development goals. He also noted Serbia’s interest in fostering development opportunities to strengthen bilateral relations in the sector.
The fund recently celebrated 50 years of advancing global development, with recent expansions into 11 new countries, including Serbia. Saudi Arabia’s official development arm has financed over 800 projects in more than 100 countries, totaling $20 billion.
