Kafalah Program Secures SAR 350 Million Through 10 Agreements At Biban 24 Forum For SMEs

The Small and Medium Enterprises Loan Guarantee Program, known as Kafalah, has recently entered into 10 memoranda of understanding and cooperation agreements. These were signed with various public and private entities during the Biban 24 Forum. This event, organised by the Small and Medium Enterprises General Authority (Monsha’at), took place from November 5 to 9 at the Riyadh Front Exhibition and Conference Center.

CEO Homam Hashem of Kafalah signed these agreements, which will provide small and medium-sized enterprise (SME) owners with access to an additional SAR 350 million in financing guarantees. This initiative is designed to enhance their ability to secure necessary funding for their development goals. The agreements aim to streamline procedures, making it easier for SMEs to obtain financing.

The Kafalah Program targets promising sectors such as dentistry, tourism, entertainment and culture, technology, export and import, local consulting, and the non-profit sector. By focusing on these areas, the program aims to support micro, small, and medium-sized enterprises that contribute significantly to the national economy.

Through strategic partnerships and innovative technological tools supported by its knowledge base, Kafalah works alongside the Small and Medium Enterprises Bank. This collaboration aims to expand financing options for SMEs while reducing lending risks for financial institutions.

These partnerships are expected to make accessing financing guarantees more convenient through digital processes. CEO Hashem remarked that these collaborations "enhance the capacity of small and medium-sized enterprises to obtain the financial support they need by offering guarantees that boost entrepreneurs' confidence in realizing their ambitions."

The program's commitment is evident in its provision of financial guarantees. These guarantees increase the likelihood of securing necessary funding while minimizing risks for lenders. This effort is part of a broader strategy to empower SMEs by reducing time and effort required for obtaining financing.

Kafalah's initiatives are crucial in supporting SME growth by providing essential financial backing. By doing so, they help businesses achieve their development objectives more efficiently. The program's focus on digital solutions further simplifies access to financing guarantees for entrepreneurs.

With inputs from SPA