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The Cabinet approves the establishment of a program to guarantee the financing under the supervision of the Small and Medium Enterprises General Authority “Monsha’at”

26/11/2019

On Tuesday, the Cabinet announced the decision to establish a program to guarantee the financing of SME, in a view to activate its integrative and collaborative role with the financing entities of the private sector to provide the best financing solutions provided to the commercial activities in the Kingdom of Saudi Arabia.

This decision will enhance the integration in providing the loan financing solutions provided by “Monsha'at" with the Small and Medium Enterprises Financing Guarantee Program “Kafalah" through providing financing guarantees under its supervision, as “Monsha'at" works on establishing new scopes and channels to lend the SME through several initiatives that include the financing of the working capital and emerging enterprises, in addition to the integration with the indirect lending initiative through the financing companies licensed by the Saudi Arabian Monetary Agency.

During the year 2018, Kafalah program received great support to raise its capital to 1.6 billion riyals as part of the financing initiatives for “Monsha'at", and the initiatives to stimulate the private sector, with the aim of expanding the provision of financing guarantee service and motivating the financing entities to provide financial support to the owners of SME, which contributed to enabling the program to prive 5 new products, as well as the expansion of the standard guarantee product (financing guarantee of the touristic sector, work capital, emerging enterprises, Kafalah portfolio, non-bank). That, in addition to achieving a remarkable growth in the program's functional operations including achieving growth in the value of the financing granted under Kafalah guarantee of 90% exceeding 5.3 billion riyals until the end of the third quarter of the year 2019. Also, a growth of 30% was registered in the number of guarantees reaching 2867 guarantees with a value exceeding 3.4 billion riyals, in addition to the growth in the number of SME benefiting from the program reaching more than 1915 enterprise.

It is noteworthy to mention that Kafalah program has worked, since its establishment in 2006, on providing financing guarantees to more than 14600 enterprise with a value of more than 30 billion riyals as the value of the granted financings, and more than 16 billion riyals as the value of the issued guarantees.

Through its program with Kafalah, “Monsha'at" is conducting a detailed study to launch its new products to guarantee the financing of franchise, supply chains, and e-commerce. That, in addition to the participatory work in providing the guarantees through the financing gate that was launched recently by “Monsha'at" in a view to enhance the financing access for all SME.​


Last Update : 2/11/2021 5:35 PM
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