In a significant step towards empowering the small and medium-sized enterprises (SMEs) in the Kingdom of Saudi Arabia to export and facilitate their entry into the international markets, the leading Saudi bank, in collaboration with the Saudi Export-Import Bank and the Kafalah program, has launched the “Export Sector SME Financing Guarantee” product. This initiative aims to increase funding sources for the sector and enable its continued growth.
The collaboration will bolster financing for SMEs across a broad range of sectors, creating an enabling environment for them to export their products globally. This partnership marks a significant milestone in the pursuit of pushing SMEs onto the international stage and is one of the initiatives aimed at achieving the objectives of the Financial Sector Development Program under Saudi Vision 2030.
The Saudi Export-Import Bank provides the “Export Sector SME Financing Guarantee” product, strategically designed to stimulate international trade-related financing for SMEs, enabling them to export. This product is part of the bank’s role in expanding the capabilities of enterprises and enabling them to contribute to diversifying the national economy and increasing the non-oil gross domestic product, as well as expanding and spreading Saudi non-oil exports in global markets.
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Yasser Al-Barak, the Executive Vice President of Corporate Banking at the bank, stated, This cooperation is proof of our commitment to enhancing the growth of SMEs, especially in the field of international trade. By offering targeted financing through the ‘Export Sector SME Financing Guarantee’ product, we aim to provide tailored financial solutions for them to achieve new milestones on the global stage.
He added, Our collaboration with the Saudi Export-Import Bank and the Kafalah program aligns with our strategic goals to boost the growth of the SME sector, enabling them to face challenges and capitalize on opportunities in the global market, particularly as it is a vital sector for economic growth.
It is worth mentioning that this cooperation aims to offer customized support for financing beneficiaries of the “Kafalah program” through a special credit path to support local exporters in the program with lower fees than the regular path and increased coverage. The objective is to widen the range of support, ensuring that a greater number of local exporters in the Kingdom benefit from these advantages to expand their business scope internationally.
