Arab News, Tuesday, May 11, 2021 | Ramadan 29, 1442
Saudi Kafalah small business loan program expands rapidly in Q1
Saudi Arabia:
The Saudi SMEs loan guarantee program ‘Kafalah’ helped 1621 businesses during
the first quarter of 2021 — up 162 percent year-on-year, Al Eqtisadiah reported.
Guarantees increased by about 150 percent to SR2.9 billion and financing reached
SR3.6 billion, the newspaper said.
Some 215 private sector business women benefited from the scheme during the
first quarter of this year, compared to 64 during the year-earlier period.
The value of guarantees during the first quarter amounted to SR142 million and
the value of financing reached SR157 million.
The most prominent sectors benefiting included the wholesale and retail trade,
construction, accommodation services, food, and manufacturing industries,
according to Kafalah.
Businesses in Riyadh, the Eastern Region and Makkah claimed the lion’s share of
assistance.
The program will mostly target the tourism and entertainment sectors this year,
in addition to the communications and information technologysectors, said
Kafalah Director-General Homam Bin Abdulaziz Hashem.
The program was founded in 2006 as a joint initiative between the Kingdom’s
ministry of finance and Saudi commercial banks to help overcome SME financing
constraints.