The Saudi General Authority for Small and Medium Enterprises, also known as ‘Monsha’at’, has successfully wrapped up its Financing Week events, which were held in partnership with Saudi banks. The events took place at the support centers for enterprises located in Riyadh, Medina, Jeddah, and Khobar, with the participation of a number of private and governmental entities in the lending and investment finance sector. Highlights of the week included a series of agreements and memorandums of understanding between Monsha’at and various financing bodies and specialized companies.
The activities during Financing Week focused on the main obstacles facing entrepreneurs and micro, small, and medium enterprises (MSMEs), and the financial solutions intended to support and foster their entrepreneurial projects. This was achieved through support councils that hosted a cadre of experts in the field of financing for the MSMS sector, with notable speakers such as the acting CEO of the Small and Medium Enterprises Bank, Abdul Rahman bin Mansour, the CEO of the Social Development Bank, Engineer Sultan Al Humaidi, and the CEO of the SME Loan Guarantee Program ‘Kafalah’, Hammam Hashem.
Throughout the week, 47 meetings and workshops were conducted, with the participation of 43 financial entities. The week’s events attracted over 3,500 registrants comprising entrepreneurs and owners of small and medium-sized enterprises. Several agreements with companies and financing entities were also witnessed, all aimed at providing comprehensive solutions and financial facilities to enhance the growth and expansion of businesses.
In a support council meeting held concurrently with Financing Week, the CEO of the Small and Medium Enterprises Bank highlighted that the total amount of credit facilities provided to SMEs in 2023 reached nearly SAR 275 billion. Additionally, the financing portfolio of the Small and Medium Enterprises Bank surpassed SAR 1 billion during the same period, funding approximately 850 establishments.
During his address at the support council, the CEO of the Social Development Bank underscored the bank’s support for small and emerging enterprises, which has contributed to increasing their share of the gross domestic product from 20% to 29% within two years. Furthermore, the Social Development Bank has provided SMEs with financing amounting to SAR 20 billion.
The Financing Week meetings also featured the CEO of the SME Loan Guarantee Program ‘Kafalah’, who during his council address, mentioned the program’s contribution since 2006, with nearly SAR 96 billion in guarantees granted to beneficiaries from the SME sector. This has added to the national gross domestic product an annual growth rate of not less than 20% based on the 2019 baseline year. Moreover, the program offers a one-third fee discount to support the entrepreneurial projects of businesswomen in the Kingdom who own at least 50% of the enterprise’s share.
‘Monsha’at’ is keen on organizing specialized weeks like this to continue its supportive role in opening new horizons for small and medium-sized enterprises. This is done by collaborating with all partners to provide opportunities for entrepreneurs, which is instrumental in achieving the growth objectives of SMEs, ensuring their sustainability and development.
