The Green Economy and Cost of Funding

Government agencies and the private sector are working in full swing to consider the funding mechanisms available to support the Saudi Green Initiative.The first package to develop the green economy was launched, which consists of investments of more than SAR 700 billion (USD 186.41 billion), and several goals were set for protecting the environment and facing climate challenges.This column discusses the financing options available to those involved in implementing these green initiatives.

In addition to direct investment from the private sector and self-financing from government agencies, there are other financing options. Among the usual traditional options are loans and Sukuk denominated in the local currency, for which the financing conditions do not stipulate adherence to...