Riyadh – Mubasher: Saudi Arabia’s General Authority for Small and Medium Enterprises (Monshaat) launched the Small and Medium Enterprises (SMEs) Bank to increase funding for the SME sector and fill the financing gap.
The aim is to strengthen innovative financing solutions, as well as the SME sector stability and contribution, in line with the Saudi Vision 2030, according to a statement by Monshaat.
The newly launched SME Bank focuses on providing all of its products and services digitally, which improves ease and accessibility, with a focus on the global best practices applying in cooperation with local and global partners.
Launching the bank comes in line with the national strategy for SMEs that Monshaat is working on.
The strategy includes 16 basic initiatives and 9 pivotal initiatives, one of which was the establishment of the bank.
Another three specific initiatives formed the core of the bank, which are the indirect lending initiative with a capital of SAR 1.6 billion, the establishment of the Saudi Venture Capital Company (SVC) with a capital of SAR 2.8 billion, and raising the capital of the Kafala program to SAR 1.6 billion.
Spending on the indirect lending initiative since its launch until the end of 2020 reached SAR 2 billion, while the total value of guarantees through the funding guarantee program for SMEs, Kafalah, between 2018 and the end of 2020 amounted to SAR 32.2 billion.