The Islamic Corporation for the Financing of Trade (ICFT) has entered into a strategic alliance with Catalyst Group with the aim of crafting tailored finance programs to bolster small and medium-sized enterprises (SMEs) within Saudi Arabia.
Engineer Hani Sonbol, CEO of ICFT, conveyed to a leading Middle Eastern media outlet that the collaboration would revamp the institution’s offerings to align with the specific funding needs of Saudi SMEs. The initiative will segment the programs to cater to the distinct capabilities of each enterprise operating in the sector.
Sonbol noted that the plan is to roll out the program in phases, eventually extending it to institutions across member states. He emphasized that Saudi Arabia’s promising market environment supports company success and that the financing programs will underpin this trajectory, aiding the economy, fostering gross domestic product (GDP) growth, and generating employment opportunities for citizens.
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The partnership aligns with ‘Vision 2030’ of Saudi Arabia, which includes a developmental agenda for trade in SMEs aimed at amplifying export volumes. The ICFT’s unique proposal for SME trade growth within the Kingdom strives to enhance the trade capabilities of these entities.
Sonbol highlighted that the trade development program would facilitate access to finance for SMEs, empowering them with opportunities to develop capacities through knowledge enhancement, awareness-raising, and network expansion, thereby enlarging their export footprint. The program also encompasses advisory services for institutions and governmental bodies to sustain export sector growth and streamline trade finance.
Ziad Al Bassam, Deputy Chairman of the Jeddah Chamber of Commerce & Industry and Head of the Small and Medium Enterprises Council, expressed to the same Middle Eastern media source that the sector faces challenges that could force companies out of the market, with financing being a critical factor for success. Concerns among financial institutions have led to a reluctance to offer suitable financing programs. This has prompted Saudi chambers to launch national initiatives supporting business entrepreneurs, such as business incubators and finance programs in collaboration with governmental entities like the Centennial Fund and the Credit Bank, as well as private sector initiatives that back this direction.
