The Small and Medium Enterprises Loan Guarantee Program (Kafalah) revealed that nearly 3,000 small and medium-sized enterprises (SMEs) benefited from the program in the first half of the 2024 fiscal year.
The program issued 3,543 loan guarantees, with a total financing value exceeding 8 billion SAR, compared to 7.2 billion SAR during the same period last year, representing an 11.66% increase.
Additionally, the program reported that the value of loan guarantees provided to these enterprises surpassed 6 billion SAR, compared to 5.7 billion SAR in the same period last year, marking a 4.63% increase.
Homam Hashim, CEO and board member of the Kafalah program, emphasized that SMEs are the main driver of the economy and a crucial element in achieving economic development and diversifying income sources, as highlighted in Saudi Arabia’s Vision 2030.
He stressed the importance of collaborative efforts between governmental and private sectors to support and develop the SME sector and overcome its challenges, praising the success of the Kafalah program as a model of public-private partnership.
Since its inception in the 2006 fiscal year until the end of the second quarter of the 2024 fiscal year, the program has approved more than 63,000 guarantees, benefiting over 22,000 SMEs, with a total financing value exceeding 99 billion SAR and total issued guarantees amounting to 70.5 billion SAR.
In collaboration with the Small and Medium Enterprises Bank, the Kafalah program aims to achieve the goals of Vision 2030 through its various initiatives and products.
The program’s objective is to assist SMEs in obtaining the necessary financing to grow their businesses and expand their activities across the Kingdom, while also encouraging financial institutions to engage with this vital sector.
