Saudi SME Loan Guarantee Program Kafalah Achieves Global Recognition With Two Innovation Awards

The Saudi Small and Medium Enterprises (SME) Loan Guarantee Program, known as Kafalah, has been honoured with two prestigious awards. These accolades were presented at the SME Finance Forum in Sao Paulo, Brazil. The awards include the Product Innovation of the Year for the MENA region and the Product Innovation of the Year DFI, IFI, Guarantee Agency Award on a global level.

Kafalah's innovative approach to guarantee issuance and automation of procedures with financial institutions was recognised. By implementing an automated system to assess applicant information, Kafalah reduced the guarantee issuance time from 45 days in 2017 to just 8 hours. This significant improvement highlights their commitment to efficiency and technological advancement.

The global award also acknowledges Kafalah's collaboration with the National Technology Development Program (NTDP). This partnership aims to boost Saudi Arabia's technology sector. NTDP chief executive Ibrahim Neyaz noted that this collaboration has financed over 180 companies, amounting to more than 1.7 billion riyals. The sector has experienced a remarkable growth rate of 65% over the past three years.

Kafalah chief executive Hammam Hashem expressed gratitude for these recognitions. He emphasised that these awards underscore Kafalah's dedication to supporting SMEs in Saudi Arabia. The program has provided financial support exceeding 100 billion riyals to more than 23,000 SMEs, showcasing its pivotal role in economic development.

These international accolades reflect Saudi Arabia's ongoing transformation efforts aligned with Saudi Vision 2030 objectives. Such achievements are expected to enhance the country's standing in the United Nations e-Government Development Index. The Kingdom continues to make strides towards modernisation and digital advancement through initiatives like Kafalah.

In summary, Kafalah's recognition at a global level underscores its impact on both local and international stages. The program's focus on innovation and technology is driving significant progress within Saudi Arabia's SME sector while contributing to broader national goals.

With inputs from SPA