Signed the “Kafala” Financing Guarantee Program for Small and Medium-Sized Enterprises a memorandum of understanding with Thraco SA, a peer-to-peer lending platform and fintech company specializing in real estate development financing, which is licensed by the Saudi Central Bank.
“Kafalah” stated via its account on the X platform (formerly Twitter) that the memorandum of understanding aims to explore opportunities for cooperation and develop financing products to support small and medium-sized enterprises inreal estate sector.
It is worth noting that the "Kafalah" program provides the necessary guarantees to financing entities with the aim of supporting the SME sector in line with the Kingdom’s Vision 2030.
On July 2, the “Kafalah” program revealed that the number of enterprises that benefited from the “Kafalah” program during the first half of fiscal year 2024 reached approximately 3,000 small and medium-sized enterprises, for which the program issued 3,543 financing guarantees totaling more than 8 billion riyals, compared to 7.2 billion riyals during the same period of the previous year—an increase of 11.66 %. It is worth noting that the value of the financing guarantees provided to them exceeded 6 billion riyals, compared to 5.7 billion riyals during the same period of the previous year, representing a 4.63% increase.
Hammam Hashim, CEO and Board Member of “Kafala,” the financing guarantee program for small and medium-sized enterprises, said: “ ”Small and medium-sized enterprises are the main engine of the economy and a fundamental element in achieving economic development and diversifying sources of income, as emphasized by the Kingdom’s Vision 2030,” He highlighted the importance of concerted efforts by various government and private entities to support and develop the SME sector and address the challenges it faces, noting the success of the “Kafala” SME Financing Guarantee Program “Kafala” as a model for public-private partnership.
Since its launch in fiscal year 2006 through the end of the second quarter of fiscal year 2024, the program has approved more than 63,000 guarantees, benefiting more than 22,000 small and medium-sized enterprises, with total financing exceeding 99 billion riyals, compared to the total value of guarantees issued, which amounted to 70.5 billion riyals.
In coordination with the Small and Medium Enterprises Bank, the Kafala Program seeks to achieve the goals and pillars of the Kingdom’s Vision 2030 through all its initiatives and products, helping small and medium-sized enterprises obtain the financing necessary for business growth and expand their activities throughout the Kingdom, as well as to encourage financial institutions to engage with the SME sector.
