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Saudi: Kafalah provides $3.70bln in loan guarantees to support SMEs in 2024

Riyadh: The Small and Medium Enterprises Loan Guarantee Program (Kafalah) issued loan guarantees worth SAR13.9 billion in 2024 in its efforts to support the development of SME financing.

A total of 5,346 small, medium, and micro enterprises benefited from the program, with over 7,000 guarantees issued and financing exceeding SAR18 billion, marking a 17% increase from 2023, when financing amounted to SAR15.7 billion.

Kafalah emphasized that these results reflect its continuous efforts to enhance the SME sector, supporting the goals of Saudi Vision 2030, which aims to diversify the economy and promote sustainable development.

The program attributed the growing demand for loan guarantees to the continued implementation of initiatives designed to support SMEs, as well as improvements in its operational efficiency through reliance on qualified national talent and the development of innovative products tailored to target sectors. Furthermore, cooperation with government entities has ensured the sustainability of these initiatives, reinforcing the program’s role as an effective tool for supporting the sector and achieving its development goals.

Kafalah seeks to boost the national economy by providing financial guarantees that enhance the access of SMEs to necessary funding while mitigating lending risks for financial institutions through strategic partnerships, innovative technological tools, and knowledge-based program frameworks. This effort is integrated with the Small and Medium Enterprise Bank, which facilitates SME financing expansion under the supervision of the National Development Fund that seeks to provide an incubating environment for SMEs in the Kingdom.