Latest news with #SmallandMediumEnterprisesLoanGuaranteeProgram
Zawya
28-04-2025
- Business
- Zawya
Saudi: Kafalah grants 1,900 loan guarantees worth over $1.28bln to SMEs during 1Q 2025
RIYADH — The Small and Medium Enterprises Loan Guarantee Program (Kafalah) has issued 1,900 loan guarantees to small and medium enterprises (SMEs) with a total financing worth over SR4.8 billion during the first quarter of 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. (
Zawya
17-03-2025
- Business
- Zawya
Saudi Arabia launches loan guarantees for SMEs to stimulate investment in environmental projects
RIYADH — Minister of Environment, Water and Agriculture Eng. Abdulrahman Al-Fadley witnessed on Sunday the signing of an agreement between the Environment Fund and the Small and Medium Enterprises Loan Guarantee Program (Kafalah) to launch a loan guarantee product to support environmental projects in the Kingdom. The agreement seeks to provide guarantees for credit facilities provided to small and medium-sized enterprises (SMEs), contributing to stimulating investment in the environmental sector. This agreement coincides with the launch of the Incentives and Grants Program Platform to support environmental projects in the Kingdom. The agreement aims to support the financing of economically viable micro, small, and medium enterprises that face challenges in providing the required guarantees to financing entities. The Kafalah Program contributes to providing financial guarantees that cover a portion of the financing granted to these enterprises, encouraging financing entities to provide the necessary support. During the ceremony, Al-Fadley, who is also chairman of the Board of Directors of the Environment Fund, launched the electronic platform for the Incentives and Grants Program in the Environment Sector, one of the Environment Fund's programs to promote sustainability and stimulate projects and initiatives, in line with the National Environment Strategy. Under the agreement, the two parties will work to contribute to achieving the National Environment Strategy by stimulating environmental protection projects in the Kingdom, financing environmental initiatives, and promoting investment in the environment and meteorology sectors by providing credit facilities in partnership with approved financing entities. The agreement also aims to foster joint cooperation between the two parties by supporting and developing the target group, contributing to strengthening the ecosystem of these entities and achieving their financial sustainability. It also aims to enhance their credit capabilities by providing the necessary guarantees to financing entities, encouraging them to increase the percentage of financing for economically viable SMEs within the target group. This step comes within the framework of the ministry's efforts to enhance environmental sustainability, stimulate investment in the environmental sector, promote environmental sustainability, and support pioneering projects. It also falls within the framework of the ongoing efforts to achieve integration between the public and private sectors, which enhances innovation and financing in environmental projects and creates new opportunities for growth and investment in this vital sector, in line with the goals of Saudi Vision 2030. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
