The Saudi Fund for Development signed a USD 15 million development loan agreement with the Republic of Palau on April 6, 2026, marking the Fund’s first development partnership in the Pacific island nation. The signing ceremony took place in Ngerulmud, Palau’s capital.
H.E. Sultan Abdulrahman Al-Marshad, Chief Executive Officer of SFD, and H.E. Surangel S. Whipps Jr., President of the Republic of Palau, signed the agreement during the ceremony. The deal represents a new geographic milestone for the Saudi institution.
Loan Structure and Intended Use
The USD 15 million loan will be channeled through the National Development Bank of Palau. Funds are designated to support projects led by Palauan developers, businesses, and entrepreneurs, in line with the country’s national development priorities.
Affordable, climate-resilient housing is among the priority areas identified for financing. The loan aims to create jobs, attract investment, and retain economic value within Palau. President Whipps said the agreement targets long-term community stability and opportunities for young Palauans.
Saudi Fund for Development Expands Pacific Presence
This agreement extends SFD’s work with Small Island Developing States (SIDS). The Fund has previously supported development projects across 18 island nations in the Caribbean and Pacific regions. The Palau deal adds a new country to that portfolio.
SFD’s financing in these regions focuses on strengthening economic resilience, expanding access to essential services, and supporting sustainable development. The Fund’s activities align with the United Nations Sustainable Development Goals.
Statements from Both Sides
“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.”
H.E. Surangel S. Whipps Jr., President of 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.”
H.E. Sultan Abdulrahman Al-Marshad, CEO, Saudi Fund for Development
SFD Background and Global Reach
The Saudi Fund for Development was established in 1974 as a government institution providing concessional development loans to developing countries. Since then, it has financed more than 800 projects and programs in over 100 countries, with a total value exceeding USD 22 billion.
SFD’s portfolio spans transportation and communications, social infrastructure, agriculture, energy, industry, and mining. The Fund works with regional and international organizations to advance development cooperation globally. The Palau agreement adds to a record of financing that stretches across five decades.
