SMEs authority Monshaat launches lending initiative at SAR 1.6 bln in capital

Small and Medium Enterprises General Authority (Monshaat) has launched an indirect lending initiative at SAR 1.6 billion in capital, in partnership with the Local Content and Private Sector Development Unit (Namaa), according to an official statement.

The initiative, which targets small and mediums enterprises (SMEs) as well as business entrepreneurs, helps providing licensed finance companies with low-cost loans. It will also introduce new diversified financing instruments to boost investments as well as new developments.

Phase I of the lending initiative comprised eight licensed financers, namely, Gulf Finance Corporation, AJIL Financial Services Company, Al Raedah Finance, Al Amthal Financing, Maalem Financing Company, National Finance, Tamweel Aloula and Morabaha.

This is Monshaat’s second initiative, after “estrdad”, within its plan to enhance the private sector’s contribution.