Saudi fund extends $32m in loans to Bosnia for education, innovation projects

23/07/2025 02:14 AST

Social infrastructure in Bosnia and Herzegovina is set to improve following two Saudi-funded development loans worth $32 million, targeting science, technology, and higher education facilities.

The Saudi Fund for Development has allocated $19 million for the construction of a Science and Technology Park, and $13 million for the development and outfitting of a new student dormitory at the Borisa Starovic Public Institution Student Center in Foca, in the country's southeastern region.

SFD CEO Sultan Al-Marshad signed the deals with Bosnia's Minister of Finance and Treasury Srdan Amidzic, in the presence of Saudi Ambassador Osama bin Dakhil Al-Ahmadi, according to an official release.

The new funding builds on nearly three decades of Saudi-Bosnian cooperation, during which the SFD has financed 27 projects through nine concessional loans totaling over $163 million, along with $53 million in grants supporting post-war reconstruction and long-term development.

"The Science and Technology Park Project aims to establish a multidisciplinary scientific center covering a total area of approximately 200,000 square meters, supporting technological advancement, economic development, health care, and higher education," the SFD said.

"The center will serve as a collaborative hub for researchers, scientists, and entrepreneurs across various fields," it added.

The student housing project is intended to strengthen the higher education sector by boosting student enrollment and providing improved accommodation to enhance learning opportunities and support broader community development.

The agreements with Bosnia and Herzegovina come amid the SFD's broader engagement in the Balkans. In October 2024, Serbia signed three loan agreements worth $205 million with the fund to support its agriculture, education, and energy sectors, underscoring Saudi Arabia's growing development partnerships across Southeastern Europe.

The SFD's activity in Bosnia is part of a larger push across emerging economies. In a separate deal earlier this month, the fund signed a $30 million loan agreement with Tajikistan to finance the Kulob city ring road project.

The project aims to enhance regional transit infrastructure by linking Central Asian countries with China and Indian Ocean markets via land routes. It includes the construction of a road and two bridges to improve traffic flow, road safety, and trade efficiency.

An SFD delegation led by Al-Marshad also recently participated in the inauguration of the Wayamba University township development project in Sri Lanka.

The $28 million initiative, located in the country's northwestern province, includes new construction, classroom renovations, and modern educational equipment to strengthen the higher education sector.

Arab News