mof.gov.sa Rules for Hotel Projects Loan Saudi Arabia : Ministry of Finance

Organization : Ministry of Finance
Facility : Rules for Hotel Projects Loan
Country : Saudi Arabia
Website : https://www.mof.gov.sa/en/Pages/default.aspx
Terms & Conditions : https://www.statusin.org/uploads/41755-HotelLoans.docx

MOF Hotel Projects Loan Rules

Follow the below Procedures to Obtain a Hotel Projects Loan,

Related : Industrial Development Fund Apply For Loan Saudi Arabia : www.statusin.org/5351.html

Lending Scope

1. Hotels and annex buildings such as villas, hotel suites, halls and conference centers.
2. Resorts and Holiday accommodation.
3. Heritage Hotels.

Requirements For Obtaining the Loan

1. The investor shall be a Saudi either natural or a legal person.
2. The project, that is to be loaned, must meet all conditions, general and special specifications that have been specified by the competent authorities. Nonetheless, public services shall be available in the site of the project.

3. The capital of the company specified in the Articles of Association shall be the basis for the financing, so that the capital of the company shall not be less than (25%) of the estimated investment costs of the project, if the company is under establishment in the time of requesting the loan or getting the approval, while the existing companies shall have a finance structure of (40% Owners ’ equity and 60% financing).

4. Lending shall be limited to projects that are held in cities or provinces and that are less developed and characterized by tourist attractions. And new tourist destinations with a population of less than one million.

5. If the project is to be built on a land owned by the investor, the land and buildings of the project shall be held in a pledge or the investor shall provide a bank guarantee equal to the value of the loan provided that the bank guarantee shall be valid until the loan is fulfilled and its value is reduced by the amount of the installments that have been repaid.

6. If the project is to be built on land not owned by the investor, the mortgage shall be for another land whose value is estimated at 30% of the value of the loan or to provide a guarantee equal to the value of the loan.

7. If the project that is to be financed under the third section of the lending (Heritage Hotels) the investor shall offer a bank guarantee against the loan.

Required Information & Documents

1. To Fill out the application forms for the loan.
2. To Submit documents proving the solvency of the investor (individual / company) and ability to complete the work of the project and its operation.
3. Economic feasibility study for the project in Arabic prepared and approved by a certified office.

4. A copy of the tittle deed of ownership of the land on which the project will be built or a copy of the lease if the land is leased provided that the lease period is not less than the period of repayment of the loan with a map attached to the site “sketch”.

5. Engineering diagrams of the project shall be approved by licensed design office and certified by the Municipality and the General Commission for Tourism & National Heritage with a scale (ratio of 100/1) and a copy on CD.
6. A copy of the license for building the project from the Secretariat or the Municipality

Loan Amount

The loan is allocated for financing buildings, facilities, and furniture so that no more than %20 of the loan is allocated to the equipment and furniture. The maximum limit of the loan includes buildings, equipment and furniture reach to %50 of the estimated cost approved by this Ministry for the whole project and shall not exceed (S.R100 million).

Loan Repayment

The amount paid out of the loan is repayable in ten annual installments, the first of which is due after four years from the date of the contract.