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Kafalah, a Saudi-based SME financing guarantee program, and the Business Incubators and Accelerators Company (BIAC), a subsidiary of the Saudi Development and Technical Investment Company (TAQNIA), on Sunday signed a cooperation agreement to facilitate financing of technical startups incubated and graduated by Badir Technology Incubators and Accelerators Program.
The agreement aims at co-operation between the two parties to overcome the obstacles and challenges facing the SME sector, in order to enhance the sector and increase its contribution to the national economy, in line with the Kingdom's Vision 2030, the companies said in a joint statement.
Under the agreement, Kafalah will provide private sector financing agencies with the necessary guarantees to support the Badir startups, which seek to obtain finance to develop and expand their business.
Homam Hashem, general manager of Kafalah, said that the agreement was signed to stimulate the SME and startups sector in order to keep up with the steady growth in the number of applications filed for finance under the guarantee of the program.
Nawaf Al Sahhaf, CEO of BIAC, said that the strategic partnership with Kafalah will provide necessary finance to the promising SMEs, in particular those incubated by its business incubators and accelerators.
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