Saudi Arabia: Tunisia’s railway network is set to improve as the Saudi Fund for Development is expected to finalize a loan agreement during its visit to the African country’s capital.

The development came as Sultan Al-Marshad, CEO of SFD, and Saudi delegates initiated their Tunisia visit on Feb. 21, focusing on discussions to enhance development collaboration between the two sides. 

SFD’s visit to the country aims to finalize a development loan agreement for the renovation and development of the phosphate transport railway, the Saudi Press Agency reported. 

Welcomed by Tunisian Prime Minister Ahmed Al-Hachani, Al-Marshad engaged in talks to strengthen cooperation, and support social and economic growth in various Tunisian regions. 

During his visit, the CEO also participated in a housing unit handover ceremony in Zaghouan governorate. 

SFD has been extending financial aid and development loans to Tunisia since 1975. 

In July 2023, Saudi Arabia granted $400 million as a soft loan and $100 million as a grant to bolster Tunisia’s economy.  

Established in 1974, SFD has funded over 800 development projects valued at $20 billion across more than 100 countries globally. 

In December 2023, during the Tunisian-Saudi Joint Commission held in Tunis, Finance Minister Sihem Boughdiri Nemsia said that her country is ready to consolidate constructive cooperation with the Kingdom to achieve the development goals of both nations.  

During the same event, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef noted that the Kingdom wishes to become an active partner in Tunisia’s economic activities.  

“Given that Tunisia enjoys important mineral resources such as iron, copper, lead, and a significant phosphate reserve, we hope to explore more investment opportunities in these areas and obtain operational concessions in Tunisia,” said Alkhorayef, as reported by the Tunisian News Agency, Tunis Afrique Presse. 

During the December visit, Alkhorayef engaged in meetings with Tunisian officials, including Minister of Trade and Export Development Kalthoum ben Rejeb. The discussions focused on exploring avenues to boost Saudi non-oil exports to Tunisia. 

He also met with Tunisia’s Minister of Agriculture, Water Resources, and Fisheries, Abdelmonem Belati, to discuss plans for formalizing a memorandum of understanding in the field of water resources.