Saudi Arabia to establish bank of SMEs
SOURCE: Al Arabiya News
Saudi Arabia’s Cabinet has approved establishing the bank of Small and Medium Enterprises. The announcement was made during the Saudi Cabinet’s weekly meeting, where the council of ministers discuss local, regional and global developments.
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The bank will focus on providing all its products and services in a digital form without the need to establish branches. This will contribute to the delivery of services to all promising regions, and focuses on applying international best practices in cooperation with international and local partners to build a portfolio of appropriate products for each segment of SMEs.
The launch of the SMEs Bank was the work of the Kingdom’s General Authority for Small and Medium Enterprise (Monshaat) in line with the national strategy for SMEs and included 16 basic initiatives and 9 pivotal initiatives, according to a report by SPA.
Monshaat said the total amount disbursed in the indirect lending initiative since the launch of the initiative until the end of last year reached two billion riyals, while the amount approved for investment exceeded one billion riyals. The total value of financing guarantees through the financing guarantee program for SMEs (Kafalah initiative) from the year 2018 until the end of last year reached 32.2 billion riyals.
“The SMEs Bank brings together all financing solutions under one umbrella to enable the small and medium enterprises sector to access appropriate financing and achieve stability and growth,” the Ministry of Commerce said on Twitter.
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