Program Kafalah continues to play a crucial role in supporting small and medium-sized enterprises (SMEs) by facilitating their access to necessary financing for development and expansion. The program aims to overcome financing obstacles by providing financial guarantees.
Since its inception, Kafalah has supported the SME sector, leading to the creation of one million jobs by enabling businesses to secure essential funding. The program is now preparing to honor its partners for their efforts in supporting the national economy and contributing to the growth of the SME sector.
To date, Kafalah has supported over 23,000 SMEs, including 27 companies that have transitioned to the parallel market, showcasing the program’s success in enhancing these businesses’ growth and expansion capabilities.
Kafalah encourages financial institutions and commercial banks to fund the SME sector by covering a portion of the risks if the guaranteed business defaults on repayment. This initiative incentivizes financial sectors to engage with SMEs, increasing the likelihood of business owners obtaining necessary funding for growth.
The program also attracts new business owners who were not previously accustomed to dealing with financial institutions, further developing the sector and enhancing its role in the national economy. Kafalah’s impact extends to economically less active regions, creating new job opportunities and fostering entrepreneurship.
Through this initiative, SMEs are better positioned to achieve success and sustainability, supporting Saudi Vision 2030’s goals of promoting comprehensive and sustainable economic growth. This effort complements the Small and Medium Enterprises Bank’s mission to expand SME financing.
