Latest news with #SaudiCentralBank
Leaders
6 days ago
- Business
- Leaders
Finance Minister Leads Saudi Delegation at 3rd G20, Central Bank Governors Meeting
Minister of Finance Mohammed Aljadaan will lead Saudi Arabia's delegation at the 3rd G20 Finance Ministers and Central Bank Governors Meeting, held under South Africa's G20 Presidency. The meeting is scheduled to take place from July 17 to 18, 2025, in KwaZulu-Natal, South Africa. The event will bring together finance ministers and central bank governors from G20 member states, as well as representatives from invited nations and leaders of international and regional financial institutions. Joining the Saudi delegation are Ayman Al-Sayari, Governor of the Saudi Central Bank (SAMA), and other senior officials from the Ministry of Finance and SAMA. Discussions will focus on current global economic developments and key issues related to international financial stability. Related Topics : Saudi Finance Minister Leads Delegation at G20 FMCBG Meeting in South Africa Saudi Arabia Participates at G20 Trade and Investment Ministerial Meeting in Brazil 3.9 BILLION PEOPLE ARE USING THE INTERNET Eastern Region Waterfronts: Top Ramadan Spots Offering Serene Spiritual Experience Short link : Post Views: 8 Related Stories
Arab News
17-07-2025
- Business
- Arab News
Saudi MSME lending surges 31% in Q1 amid digital optimism and financial reform
RIYADH: Saudi Arabia's lending to small, medium, and micro enterprises rose by 31 percent year on year in the first quarter of 2025, according to recent data from the Saudi Central Bank. The total value of facilities reached SR383.2 billion ($102.18 billion), up from SR293.43 billion in the same period last year. Of this, 95.12 percent was disbursed by banks, while the remaining 4.88 percent came from finance companies, highlighting the formal sector's growing involvement in SME credit provision. Medium-sized companies — defined as those with revenues between SR40 million and SR200 million and 50–249 employees — accounted for the largest share of loans, receiving SR190.18 billion. Small enterprises followed with SR139.6 billion, while micro-enterprises received SR53.43 billion. Notably, micro-enterprises saw the fastest growth, with loan volumes surging by 82 percent year on year, compared to 35 percent for small enterprises and 18 percent for medium-sized firms. The lending boom reflects the expanding role of SMEs in Saudi Arabia's economic diversification strategy under Vision 2030. Monsha'at, the General Authority for Small and Medium Enterprises, has played a pivotal role through programs like Kafalah — a loan guarantee initiative designed to de-risk lending to SMEs by assuring a portion of the loan value to participating financial institutions. This has been instrumental in extending access to credit, particularly for micro and first-time borrowers. Despite rising loan volumes, credit access remains a structural challenge. According to the World Bank, SMEs across the Middle East and North Africa region receive only 8 percent of total bank credit, compared to 22 percent in high-income economies. In Saudi Arabia, SMEs accounted for just over 9 percent of total loans in 2024 — far below the Vision 2030 target of 20 percent. New players are helping bridge the gap. Saudi-based fintech platform Erad recently raised $16 million in a pre-Series A funding round to expand its Shariah-compliant, data-driven SME financing offering, according to Wamda in April. The company, which provides funding in as little as 48 hours, says over 60 percent of its clients are first-time credit takers. Since launch, it has processed more than SR100 million in funding and received over SR2 billion in applications, underscoring pent-up demand for fast, flexible finance. Meanwhile, digital optimism among Saudi entrepreneurs is on the rise. According to the 2025 Mastercard SME Confidence Index, 93 percent of surveyed SMEs expressed confidence in the year ahead. The adoption of digital payments has risen sharply, with 99 percent now accepting them, up from 88 percent in 2023. SMEs cited faster access to revenues, enhanced credibility with financial institutions, and more streamlined transactions as key benefits. Data and AI are also seen as enablers of smarter, more inclusive lending. Nearly 97 percent of surveyed SMEs said better data and analytics tools were essential to scaling operations. A growing number are prioritizing AI, automation, and cybersecurity in their growth strategies — trends that align with broader efforts to digitize financial infrastructure. Lending models must evolve alongside SME needs. Traditional bank lending often requires fixed-asset collateral and extensive documentation, limiting access for tech-oriented or service-based SMEs, according to a June article by International Banker. Risk assessment remains based on backward-looking financials, rather than dynamic indicators like sales or payroll data. Fintechs like Erad are disrupting this model by using real-time revenue data to underwrite loans. Globally, the credit gap for SMEs stands at $5.7 trillion, with Gulf Cooperation Council countries accounting for roughly $250 billion of that, according to International Banker. Saudi Arabia's efforts to close this gap are gaining momentum. In addition to loan guarantees and fintech innovations, open banking frameworks, SME-focused digital banks, and embedded finance models are helping to lower access barriers. Vision 2030 sets a clear target: raise SME contribution to GDP from 30 percent to 35 percent. With over 1.8 million SMEs now operating in the Kingdom, financial empowerment of this sector is not just a policy goal — it is a macroeconomic imperative. The path ahead will require deeper ecosystem alignment, tailored credit models, and continued innovation. But the first quarter of 2025 has already signaled a strong start — one that reflects both institutional commitment and entrepreneurial momentum across the Kingdom.
CairoScene
09-07-2025
- Business
- CairoScene
Foreign Investments in Saudi Arabia Rise 16% to Over SAR 3 Trillion
Foreign investments in Saudi Arabia surged 16% in early 2025, surpassing SAR 3 trillion for the first time, with net inflows rising 44% and direct investment hitting nearly SAR 1 trillion. Foreign investment in Saudi Arabia rose in early 2025, reaching SAR 3.05 trillion by the end of the first quarter - a 16% increase compared to the same period in 2024, according to the Saudi Central Bank (SAMA). This is the first time the Kingdom's foreign investment stock has crossed the SAR 3 trillion mark. Direct foreign investment accounted for SAR 995.5 billion, or roughly a third of the total. Portfolio investments, including shares, equity funds, and debt instruments, reached SAR 1.24 trillion, while other forms of investment contributed SAR 808.4 billion. The Kingdom also saw a 44% increase in net inflows, which reached SAR 22.2 billion, fuelled by a 24% rise in inward flows and a sharp 54% drop in outflows, down to SAR 1.8 billion. In 2024, Saudi Arabia attracted USD 26 billion in foreign direct investment, exceeding the government's annual target. However, the figures reflect growing global confidence in the Kingdom's economic reforms and investment climate as part of Vision 2030.
Leaders
08-07-2025
- Business
- Leaders
SAMA Grants License to Awn Alraidah Company for Consumer Microfinance Activities
The Saudi Central Bank (SAMA) has granted a license to Awn Alraidah Company, allowing it to provide consumer microfinance services using financial technology. With this addition, the number of companies authorized to offer consumer microfinance solutions in the Kingdom has increased to nine, bringing the total number of finance companies licensed by SAMA to 68. This move aligns with SAMA's ongoing efforts to strengthen the financial sector, improve transaction efficiency, and encourage innovative financial solutions that support broader financial inclusion across Saudi Arabia. SAMA emphasizes the importance of dealing only with licensed financial institutions. A complete list of authorized entities is available on the official SAMA website. Related Topics: GASTAT: Saudi Arabia's Inflation Holds Steady at 2.2% in May 2025 Saudi Arabia's Inflation Rate Eases to 1.9% in December Rental Prices Drive Inflation in August 2024: GASTAT SAMA Officially Launches 'Samsung Pay' in Saudi Arabia Short link : Post Views: 15 Related Stories
Saudi Gazette
08-07-2025
- Business
- Saudi Gazette
Foreign investments in Saudi Arabia jump 16% to SR3 trillion by 1Q 2025
Saudi Gazette report JEDDAH — Foreign investments in the Saudi economy have exceeded SR3 trillion by the end of the first quarter of 2025. According to the data released by the Saudi Central Bank (SAMA), foreign investments increased for the first time during this period to SR3,048.5 billion, a 16 percent increase compared to the same period in 2024. Foreign investments include foreign direct investment (FDI), which represents 33 percent of the total, equivalent to SR995.5 billion; portfolio investments, which include equity, investment fund shares, and debt securities valued at SR1,244.6 billion; and other investments valued at SR808.4 billion. It is noteworthy that foreign investment inflows into Saudi Arabia jumped by 24 percent during the first quarter of 2025, reaching SR24 billion (approximately $6.4 billion). On the other hand, outflows amounted to SR1.8 billion ($480,000), a 54 percent decrease, bringing net foreign investment inflows to SR22.2 billion ($5.9 billion), a 44 percent increase compared to the same quarter last year, according to data from the General Authority for Statistics (GASTAT). During the year 2024, foreign direct investment (FDI) inflows to Saudi Arabia reached approximately $26 billion, exceeding the interim target set by the government. These indicators showed an increase in the attractiveness of the Saudi economy for foreign direct investment during the first quarter of 2025, despite the decline in outflows compared to the same period last year.
