The financing loan program "Kafala", in cooperation with the Saudi Export-Import Bank, announced the start of work on the financing guarantee product for the export sector, as the product aims to enhance the development and diversification of Saudi exports and increase their ability to compete in global markets.
The Saudi EXIM Bank provides support allocated to finance the beneficiaries of the “Kafala" program according to a special affiliation path to support Saudi exporters in the “Kafala" program, with lower fees than the normal path and a higher coverage size, and includes all regions of the Kingdom, provided that the establishment has at least previously practiced exports for one year in the sector.
The export product targets all sectors targeted by the Saudi EXIM Bank according to the National Guide for Economic Activities described by the Ministry of Commerce, provided that the purpose of the financing is to support export and proof of this is provided with supporting documents, which is: Customs clearances for products, an external purchase order or a valid contract for the provision of external services.
His Excellency Engineer Saad Al-Khalab said: “We are pleased to sign this agreement with the “Kafala" program, which is one of the most important possible programs for the small and medium enterprises sector in the Kingdom. As we are also proud of this pioneering integrative step to achieve the goals of Vision 2030 of empowering the small and medium enterprises sector, as it one of the most important drivers of economic growth and achieving qualitative addition to the export sector on the other hand. We were pleased to cooperate with Kafalah due to its long experience in managing programs designated for the small and medium enterprises sector, and its capabilities in understanding the needs of these enterprises."
On the other hand, the CEO of the “Kafala" program, Mr. Humam Hashem mentioned: “This agreement is of great importance in enabling Saudi exporters and manufacturers of small and medium enterprises to expand their export activities without the need to provide mortgages to financing parties and obtain fast and competitive financing in terms of price and financing conditions, especially with the presence of multiple financing options from banks and financing companies."
The export product contributes to achieving the goals of the Kingdom's Vision 2030 in empowering the small and medium enterprises sector and raising its contribution to the gross domestic product, in addition to developing Saudi exports, increasing the contribution of the banking sector, and supporting export financing.