Kafalah extends SAR 8B loan guarantees to 3,000 SMEs in H1 2024

Small and Medium Enterprises Loan Guarantee Program (Kafalah)

The Small and Medium Enterprises Loan Guarantee Program (Kafalah) revealed that nearly 3,000 SMEs benefited from the program during the first half of 2024.

The program reported issuing 3,543 financing guarantees worth over SAR 8 billion, compared to SAR 7.2 billion last year, marking an 11.66% increase. The value of the guarantees provided exceeded SAR 6 billion, compared to SAR 5.7 billion last year, reflecting a 4.63% increase, Saudi Press Agency reported.

CEO and Board Member Homam Hashem stated that SMEs are the main economic driver and crucial for achieving economic development and income diversification, as emphasized by Vision 2030.

He highlighted the importance of government and private sector efforts to support SMEs and address their challenges, noting the program's success as a public-private partnership model.

Since its inception in 2006 until the end of Q2 2024, the program approved over 63,000 guarantees, benefiting more than 22,000 SMEs with total financing exceeding SAR 99 billion. The total value of issued guarantees amounted to SAR 70.5 billion.

Kafalah program, in coordination with the SME Bank, aims to achieve Vision 2030 goals in all initiatives and products, helping SMEs obtain financing to grow and expand across the Kingdom, and encouraging financial institutions to engage with the SME sector.