Riyadh - Sharikat Mubasher: Saudi Arabia’s Small and Medium Enterprises Bank (SME Bank) has disbursed over SAR one billion to foster the growth of more than 800 SMEs since its inception until the end of January 2024, according to recent figures.

A recent report by the Saudi National Development Fund (NDF) revealed that the bank has provided small enterprises with funding amounting to SAR 429 million and extended SAR 235 million to medium-sized enterprises. Additionally, the bank has created more than 1,000 job opportunities.

The SME Bank has provided these funds through three financing models: Joint Financing, Proxy Financing, and Low-Cost Loan. Around 531 SMEs received funds through the Joint Financing model, while 158 SMEs benefited from the Proxy Financing model and another 154 SMEs got funds through the Low-Cost Loan model.

In 2023, the bank launched five financing products: Microloans, Working Capital Loans, Term Loans, E-Commerce Loans, and Revolving Limit Loans.

Abdulrahman Mansour, CEO of SME Bank, emphasized the bank’s commitment to bridging the financing gap for SMEs and addressing existing challenges through financing and investment solutions.

“The Saudi economy is now much stronger because of the SME sector, which is growing within a development ecosystem that enhances SMEs’ ability to withstand challenges. The National Development Fund is also coordinating and integrating the operations of its affiliated funds and banks regarding medium- and long-term development financing needs,” Mansour said.

The SME Bank aims to increase the total loan portfolio for the financial sector and bolster the contribution of financial institutions in providing innovative financing solutions, in alignment with Vision 2030 objectives.

It is worth noting that the total number of SMEs in Saudi Arabia surpassed 1.4 million, representing 99% of the total enterprises in the Kingdom.