Some financial institutions have expressed concerns due to the lack of a clear mechanism or an accurate, up-to-date database for these facilities, at a time when efforts are accelerating toward new financing programs in line with the momentum seen in the real estate and housing finance sector, based on recent positive decisions that have bolstered this sector.<\/p>\n
Banks' Hesitation and Reluctance
\n It is noteworthy that many banks have refrained from providing financing to these enterprises due to the high financing risks that may arise from the opacity of this sector and its lack of regulation, despite its importance and active contribution to the gross domestic product. Upon closer examination of this sector and analysis of its components, we observe that, in recent times, it has experienced a state of decline and disintegration, marked by a severe lack of a clear strategy, an administrative structure, or strong capital, This is one of the main objectives that the Evaluation Project seeks to achieve: to establish a clear and specific mechanism through which banks and other financial sectors can provide credit facilities based on comprehensive and up-to-date information about these enterprises. .
\n Sama CEO Nabil Al-Mubarak clarified this, stating, \u00abThere are more than 50 entities involved with these facilities, including 17 government entities, 12 quasi-governmental entities, 7 public organizations, 12 nonprofit entities, and two for-profit entities\u2014namely, the banking sector and installment companies.\u00bb He noted that the value of small businesses has grown significantly and remarkably, reaching 9 billion riyals more than 10 years ago, while today it amounts to more than 300 billion riyals. He also mentioned the possibility of defining a small or medium-sized enterprise based on its annual revenue, provided its revenue reaches 25 million riyals, and that the annual revenue cap for small and medium-sized enterprises has been raised to 30 million riyals so that these enterprises can access the support available to them. He added during the workshop held yesterday at the Eastern Province Chamber of Commerce under the title \u00abEvaluation of Small and Medium-Sized Enterprises,\u00bb that the meeting stemmed from SIMA and the Chamber\u2019s commitment to supporting small and medium-sized enterprises, as well as a desire to meet national needs related to financing small and medium-sized projects, and as a step toward implementing a comprehensive project to support this vital sector of the national economy, with the aim of enhancing their access to credit facilities and financing from local financial institutions. .
\nPromoting Productive Activities
\nAl-Mubarak confirmed that the Tasweem project, launched by SIMAH at the end of 2011, is now fully ready to provide its services to all relevant entities in the Saudi market, whether banks or public and private financing institutions, noting that through the Ta\u2019meem project, SIMAH seeks to foster sustainable development, support economic growth, promote productive activities, and make a tangible contribution to innovation, renewal, and job creation. Regarding the project\u2019s contribution to the Saudi market, he explained that, based on global experience, supporting the small and medium-sized enterprise (SME) sector is a top economic priority that must be achieved, whether in developed or emerging economies, especially since this sector is one of the most important drivers of job creation and GDP growth. These enterprises contribute to economic diversification and social stability, particularly in the private sector, despite the challenges they face\u2014a fact that the Taqim project has taken into account. Fasma, speaking to Al-Mubarak, fully recognizes the extent of the difficulties small and medium-sized enterprises face in entering the formal sectors due to bureaucracy, even though they are the main drivers of competition, sustainable development, and job creation, particularly in emerging economies. The call to support small and medium-sized enterprises is hardly new; most economies have comprehensive programs to finance small and medium-sized enterprises, many of which date back to the 1950s and 1960s. .
\nEvaluation Certificate
\n Al-Mubarak explained that all small and medium-sized enterprises can now apply for assessment by visiting SIMAH members, including banks, or by visiting the assessment website at smepublic.simah.com, and complete all preliminary requirements to obtain the assessment certificate, including the enterprise\u2019s name, commercial registration number, owners, industrial classification, commercial registration start and end dates, and source, as well as attaching recent financial statements, partner information, the entity\u2019s organizational and administrative structure, and the applicant\u2019s commercial registration and ID card. SIMAH\u2019s SME Department will review and verify all initial attachments, and then forward them to an auditor accredited by SIMAH. The auditor (one of the leading firms in this field) will then contact the applicant to complete the remaining requirements, after which it will submit the documentation to SIMAH for the issuance of the evaluation certificate, Al-Mubarak noted that the criteria for the assessment certificate will take into account the applicant\u2019s credit history, and if the applicant is in default or has previously issued a bounced check, this may lead to a lower rating. In addition, both the financial and non-financial aspects of the business\u2014including its income statement and balance sheet\u2014will be considered to calculate precise risk weights, It should be noted that credit rating levels range from 1 to 22, with Level 1 indicating excellence in all aspects considered in the assessment, while Level 22 indicates a low rating for the business. For his part, Adel Al-Sarami, Assistant Secretary-General for Economic Affairs at the Eastern Province Chamber of Commerce, emphasized that the workshop embodies the important complementary role in supporting small and medium-sized enterprises. Al-Sarami noted that the meeting, hosted by Nabil Al-Mubarak, CEO of the Saudi Credit Information Company \u00bbSIMAH,\u00bbNabil Al-Mubarak at the Chamber\u2019s headquarters in Dammam aimed to activate the agreement signed between the Chamber and SIMAH, under which the latter will provide credit preparation services for 500 small and medium-sized enterprises in the Eastern Province, highlighting the joint project between the Chamber and SIMAH, its services, and its anticipated role.<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>Some financing institutions are concerned about the lack of a clear mechanism or an accurate and up-to-date database for these establishments, at a time when the pace has accelerated towards new financing programs in line with the movement witnessed in the real estate and housing financing arena based on the recent positive decisions that strengthened this sector. Banks have been reluctant and reluctant to ... Read more<\/a><\/p>","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[120],"tags":[],"class_list":["post-1332","post","type-post","status-publish","format-standard","hentry","category-capital-markets"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","trp-custom-language-flag":"","event-thumbnail":"","event-medium":"","event-large":"","event-hero":""},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u0623\u0633\u0648\u0627\u0642 \u0627\u0644\u0645\u0627\u0644<\/a>","tag_info":"\u0623\u0633\u0648\u0627\u0642 \u0627\u0644\u0645\u0627\u0644","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=1332"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1332\/revisions"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=1332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=1332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=1332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}