Saudi: Kafalah grants 1,900 loan guarantees worth over $1.28bln to SMEs during 1Q 2025
This figure marks an increase of 19 percent compared to SR4 billion during the same period last year.
The value of credits amounted to more than SR 3.4 billion, compared to SR2.9 billion during the same period last year, an increase of 17 percent. The number of enterprises that benefited from the Kafalah program during the first quarter of the fiscal year 2025 reached 1,610 small and medium enterprises (SMEs).
Hammam Hashem, CEO and Board Member of Kafalah, considered SMEs as a fundamental pillar in driving the national economy and a pivotal element in achieving sustainable development and diversifying sources of income, in line with the Saudi Vision 2030.
He praised the Kafalah program's experience as a successful model of public-private sector integration in empowering SMEs to meet challenges and achieve growth. "The program, since its launch in 2006 and until the end of the first quarter of 2025, has approved more than 67,700 loan guarantees, benefiting over 25,000 SMEs. The total financing exceeded SR115 billion, compared to guarantees totaling approximately SR82 billion," he said.
The Kafalah program seeks to strengthen the national economy by providing loan guarantees to enhance enterprises' access to necessary financing. To reduce lending risks borne by financing entities, the program leverages strategic partnerships and innovative technical tools, supported by the program's knowledge base.
This complements the Small and Medium Enterprise Bank, which supports the expansion of financing for small and medium enterprises (SMEs), under the management of the National Development Fund, which works to provide an incubator environment for SMEs in the Kingdom.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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