Tunisia Signs $112 Million Loan Agreement with Saudi Development Fund to Establish Oasis Hub
The Tunisian government signed a loan agreement worth 143.3 million Saudi riyals (approximately $112 million) with the Saudi Development Fund (SDF) on Friday in Tunis. The loan aims to finance the creation of an oasis hub in the southern region of the country.
The agreement was concluded between Tunisian Minister of Economy and Planning, Samir Abdelhafidh, and SDF Director General, Soltan bin Abderrahmane Al-Murshed. The financing will enable the extension of the Borj Bourguiba border village, located in the Ramada delegation (Tataouine governorate), as well as the creation of new neighboring villages.
The project also includes the development of 1,000 hectares of agricultural land. The loan will be repaid over a period of 20 years, with an interest rate of 2.5%, after a 5-year grace period.
During the signing ceremony, Minister Abdelhafidh praised the project, which will contribute to the economic diversification and development of southern Tunisia. He highlighted that, beyond its economic benefits, the initiative will create jobs and improve the living conditions of local residents.
The minister also emphasized the importance of the partnership between Tunisia and the SDF, which has been active since the 1970s and currently finances 14 ongoing projects. To date, the SDF has supported 32 projects in Tunisia, with a cumulative value of approximately $1.2 billion.
Present at the signing, Minister of Agriculture, Water Resources, and Fisheries, Ezzedine Ben Cheikh, stressed the environmental and social impact of the project. He indicated that the rational exploitation of underground water resources, through irrigation in Borj Bourguiba, will not only combat unemployment but also help fix populations in their region, preserve desert biodiversity, and enhance resilience to climate change.
