Tadweer secures US$24M loan from SIDF to boost recycling ambitions

SAUDI ARABIA – National Environmental Recycling Company (Tadweer) has secured a SAR 90 million (US$24 million) loan from the Saudi Industrial Development Fund (SIDF), marking another step in its drive to expand recycling and circular economy projects in line with Saudi Arabia’s sustainability agenda.

The loan, confirmed in a bourse filing on 28 August, forms part of a broader SAR 170 million (US$45 million) credit facility package the company obtained from Saudi Awwal Bank (SAB) earlier in April.

The financial package includes a SAR 45 million (US$11.99m) bank guarantee in favor of a government lending institution, SAR 90 million (US$24m) bridge financing linked to the SIDF loan, and SAR 35 million (US$9.33m) dedicated to working capital.

In addition to strengthening its capital structure, Tadweer’s board of directors has recommended doubling its capital from SAR 116.16 million (US$30.95m) to SAR 232.32 million (US$61.91m), reflecting the company’s growth ambitions and confidence in future demand for recycling services.

The announcement comes as Saudi Arabia accelerates efforts to build a circular economy under Vision 2030, with waste management and recycling positioned as key pillars of environmental and economic transformation.

According to the Saudi National Center for Waste Management, the Kingdom aims to divert 82% of its waste from landfills by 2035, opening opportunities for private sector players like Tadweer to scale operations.

Tadweer specializes in recycling scrap metals and other materials, contributing to the reduction of industrial waste and the promotion of resource efficiency.

The SIDF loan is expected to support new recycling projects, capacity expansion, and technology upgrades, positioning the company to play a stronger role in the Kingdom’s green industrial development.

Meanwhile, Saudi Awwal Bank has also been active in green finance. In recent months, it completed the issuance of US$1.25 billion (US$333.11m) Tier 2 capital green notes, underscoring rising investor appetite for sustainable finance instruments in the region.

The move reflects a broader trend in the Gulf, where financial institutions are aligning lending practices with sustainability goals and mobilizing capital toward renewable energy, waste management, and eco-friendly manufacturing.

Analysts say Tadweer’s financing milestone is not just about strengthening balance sheets but also about signaling long-term confidence in Saudi Arabia’s recycling sector.

As global demand for sustainable materials grows, companies like Tadweer are well positioned to transform the Kingdom’s waste challenges into opportunities for innovation and growth.

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