The Saudi Fund for Development (SFD) has signed a $15 million development loan agreement with the Republic of Palau, marking its first partnership in the Pacific country.
The agreement was formalized in Ngerulmud by Sultan Abdulrahman Al-Marshad, CEO of SFD, and Surangel S. Whipps Jr., President of Palau, underscoring a shared commitment to advancing sustainable development and economic resilience.
Financing to empower the local economy
The $15 million loan will be channeled through the National Development Bank of Palau, with a focus on supporting projects led by local developers, businesses, and entrepreneurs.
The initiative aims to stimulate grassroots economic activity, create jobs, and unlock new investment opportunities aligned with Palau’s national development priorities.
In addition to boosting economic activity, the funding is expected to support high-impact initiatives, including affordable and climate-resilient housing, contributing to long-term community stability and sustainable growth.
The agreement reflects SFD’s broader commitment to Small Island Developing States (SIDS), where it has financed development projects across 18 island nations in the Caribbean and Pacific regions.
Through such initiatives, the Fund continues to enhance economic resilience, improve access to essential services, and promote sustainable development in vulnerable economies.
Surangel S. Whipps Jr. Republic of Palau President
“This agreement is about building a stronger Palauan economy by channeling this financing through our National Development Bank so that Palauan developers, businesses, and entrepreneurs can lead new projects that create jobs, unlock investment, and keep more value here at home. At the same time, by prioritizing affordable, climate-resilient housing, we are strengthening our communities, giving our young people more reasons to build their future in Palau, and laying a more resilient economic foundation for generations to come.”
Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development, noted that, “We are proud to launch our first collaboration with the Republic of Palau. By expanding access to vital funding, we aim to uplift local entrepreneurs and help secure a resilient future for the Palauan people. This agreement embodies our broader mission to foster prosperity across island nations.”
