Saudi Kafalah Program Boosts SME Financing to $3.73bn in Q3
The financing guarantee program for small and medium enterprises in Saudi Arabia has increased by 8 percent year on year, supporting national economic growth.
Riyadh: The Small and Medium Enterprises Financing Guarantee Program, known as Kafalah, provided assurances to 5,447 businesses, boosting SME funding by 8 percent year on year to SR14 billion ($3.73 billion) in the third quarter.
This demonstrates the program's growing importance in supporting small enterprises as Saudi Arabia seeks economic diversification under Vision 2030.
According to Homam Hashem, CEO of the Kafalah program, this growth in financing reflects SMEs' crucial role in national economic development and their contribution to achieving Vision 2030's objectives.
He described the program as a pioneering model of public-private sector cooperation designed to enhance access to finance and tackle business challenges.
Since its inception, Kafalah has approved more than 71,400 guarantees worth SR89.5 billion and supported approximately 26,500 SMEs, with total financing exceeding SR125.3 billion.
Entertainment-focused businesses have shown significant growth within the program, experiencing a 98 percent year-on-year increase in financing during the second quarter of 2025.
The program backed 32 establishments, issuing guarantees worth over SR79 million.
Established in 2006 as a non-profit government initiative, Kafalah facilitates SMEs' access to credit by providing financial guarantees to banks and other lenders.
It operates in coordination with the SME Bank and the National Development Fund to create a sustainable financing ecosystem that supports enterprise growth and economic diversification.
Over the past five years, the program has contributed nearly SR27 billion to Saudi Arabia's gross domestic product, highlighting its role in expanding the Kingdom's SME landscape.
This demonstrates the program's growing importance in supporting small enterprises as Saudi Arabia seeks economic diversification under Vision 2030.
According to Homam Hashem, CEO of the Kafalah program, this growth in financing reflects SMEs' crucial role in national economic development and their contribution to achieving Vision 2030's objectives.
He described the program as a pioneering model of public-private sector cooperation designed to enhance access to finance and tackle business challenges.
Since its inception, Kafalah has approved more than 71,400 guarantees worth SR89.5 billion and supported approximately 26,500 SMEs, with total financing exceeding SR125.3 billion.
Entertainment-focused businesses have shown significant growth within the program, experiencing a 98 percent year-on-year increase in financing during the second quarter of 2025.
The program backed 32 establishments, issuing guarantees worth over SR79 million.
Established in 2006 as a non-profit government initiative, Kafalah facilitates SMEs' access to credit by providing financial guarantees to banks and other lenders.
It operates in coordination with the SME Bank and the National Development Fund to create a sustainable financing ecosystem that supports enterprise growth and economic diversification.
Over the past five years, the program has contributed nearly SR27 billion to Saudi Arabia's gross domestic product, highlighting its role in expanding the Kingdom's SME landscape.
