“Kafalah”, Saudi’s Financing Guarantee Program for Small and Medium Enterprises (EMSs) recorded, during the fourth quarter of 2022, a financing guarantee of 13.3%, compared to the third quarter of 2022, which amounted to 12.1%.
The Central Bank of Saudi Arabia (SAMA) also issued a statement of the value of general financing facilities, worth 229 billion riyals in the fourth quarter of 2022 compared to the third quarter of 2022 worth 228 billion riyals.
Kafalah has contributed to the growth of more than 6,388 enterprises since the beginning of 2022 through the support and collaboration of partners from more than 69 successful funding partners.
The Financing Guarantee Program has demonstrated its developmental and economic role aimed at enabling micro, small and medium enterprises by providing financing guarantees to male and female entrepreneurs in all the Kingdom’s regions. It aims to attract new segments of SME owners who have never interacted with financial institutions to contribute to their progress as well as activating their important role in boosting the national economy through innovative projects launched by all Saudi entrepreneurs.
Other objectives of Kafalah include: increasing women participation in the workforce and developing promising areas in different sectors such as education, tourism, entertainment and culture.
The Program collaborates with Bank for SMEs to achieve the goals and axes of Vision 2030 in all its initiatives and products. Through it, SMEs will be able to obtain the financing necessary to support their businesses and expand their activities throughout the Kingdom. It is also encouraging financial institutions to engage with the SME sector.