The SME Finance Guarantee Program signed a joint memorandum of understanding with Tawuniya Insurance Company. This cooperation is also the first in the field of developing mechanisms to share, exchange and analyze data and information that would develop and develop the SME sector, especially in the insurance field and then the possibility of analyzing and managing the risks of SMEs with high efficiency, because these projects represent an important tributary to the national economy, as they constitute more than 90% of the total number of economic enterprises in the Kingdom and contribute to about 28% of GDP.
This memorandum was signed by the head of the Kafalah program, Engineer Osama Al-Mubarak, and the CEO of Tawuniya Insurance Company, Mr. Raed bin Abdullah Al-Tamimi, at Tawuniya's headquarters in Riyadh, and the initiative is the first of its kind in the Kingdom to provide insurance protection in support of SMEs whose risks are guaranteed by the Kafalah program, providing insurance coverage for various business sectors.
In a separate context, Al Mubarak, head of the 'Kafalah' program, stressed that the role of the program is not limited to providing a guarantee to financiers and encouraging them to provide financing to the SME sector, but extends to strengthening integration and cooperation with the relevant authorities to support SME owners by helping them provide all means of success for their private enterprises throughout the Kingdom, facilitating procedures and providing moral support services from guidance and training for young businessmen and women'.
While the CEO of Tawuniya Insurance Company, Mr. Raed bin Abdullah Al Tamimi, expressed Tawuniya's pride in signing this MoU, which contributes to activating mechanisms to support national projects and transferring its great insurance expertise to SME owners and increasing their capabilities to identify project risks and how to manage them effectively, ensuring comprehensive protection of activities, higher efficiency of resources and better management of expected risks, especially since the agreement allows the provision of insurance training and educational programs between the two parties.
