Saudi Arabia’s Banque Saudi Fransi Launches $2.1 Billion Corporate Lending Program as Construction Boom Accelerates

Banque Saudi Fransi (BSF) has unveiled a new SAR 8 billion ($2.1 billion) corporate lending program aimed at supporting large-scale contractors, logistics operators, and industrial developers participating in Saudi Arabia’s rapidly expanding construction pipeline. The new initiative, announced at a Riyadh media briefing, is one of the bank’s largest sector-focused lending programs in nearly a decade.
BSF executives say the bank is responding to a surge in demand from companies working on flagship Vision 2030 projects, including The Line, Qiddiya, Diriyah Gate, and major logistics hubs across Riyadh and Jeddah. Construction tenders awarded in 2024 and 2025 exceeded expectations, prompting banks to expand credit allocation.
The lending program will focus on long-tenor facilities of up to 12 years, structured financing for equipment procurement, revolving credit for subcontractor payments, and liquidity lines for international bidding requirements. BSF says it is particularly interested in supporting mid-tier Saudi contractors that have grown rapidly but lack access to cost-effective financing.
Executives note that the construction sector is entering a new phase, with increased participation from companies in the UAE, Qatar, and South Korea. “We are seeing unprecedented capital formation in real estate, transportation, and industrial zones,” said BSF’s Head of Corporate Banking. “Our new lending package addresses the scale and pace of these developments.”
Saudi-listed construction firms such as Nesma & Partners, Al Bawani, and El Seif Engineering have been in discussions with banks over expanding credit capacity. South Korean giants Samsung C&T and Hyundai Engineering, both heavily active in Saudi infrastructure, are also expected to benefit indirectly through their joint ventures with Saudi firms.
BSF is allocating SAR 2.8 billion to heavy-equipment financing, reflecting demand for cranes, tunneling equipment, and prefabrication machinery. Industry analysts say global supply constraints have pushed up rental rates, prompting Saudi firms to purchase equipment outright.
A further SAR 1.6 billion is earmarked for logistics companies developing warehousing around King Salman International Airport and the Jeddah Logistics District. Saudi Arabia’s transport and logistics hub ambitions have attracted regional companies such as DP World, Agility Logistics, and Singapore’s PSA, increasing the need for support infrastructure.
The new program represents BSF’s broader strategy to strengthen its position in project finance. The bank has been competing actively with Riyad Bank, Saudi National Bank, and Al Rajhi Bank for major government-contract financing.
Despite rising interest rates globally, BSF believes Saudi demand remains resilient. The bank expects strong credit appetite through 2027, driven by continued diversification spending and population growth.
With the construction pipeline valued at more than $1.5 trillion, analysts say Saudi banks will continue rolling out targeted lending schemes. BSF’s move is expected to pressure competitors to introduce their own sector-specific credit programs in the coming months.