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Saudi Arabia’s Kafalah Program Boosts SME Financing to $3.73 Billion

Prime Highlights:

  • Saudi Arabia’s Kafalah program boosted SME financing by 8%in Q3, reaching SR14 billion ($3.73 billion).
  • The program continues to support economic growth under Vision 2030, helping thousands of small businesses access funding.

Key Facts:

  • Since 2006, Kafalah has approved over 71,400 guaranteesworth 5 billion, supporting around 26,500 SMEs.
  • The entertainment sectorsaw strong growth, with financing up 98% year-on-year and 94 enterprises receiving over SR304 million in funding backed by guarantees.

Key Background:

Saudi Arabia’s SME Financing Guarantee Program, called Kafalah, has boosted support for small businesses. In the third quarter, it provided 5,447 financial guarantees, increasing financing by 8% compared to last year to SR14 billion ($3.73 billion).

The total value of guarantees reached SR10.6 billion, up 4% from the same period in 2024. Around 4,384 SMEs benefited from the program, showing its growing role in helping small businesses as Saudi Arabia works toward Vision 2030 and economic diversification.

Homam Hashem, CEO of Kafalah, told the Saudi Press Agency that this growth in financing “reflects the pivotal role of SMEs in supporting national economic growth and their contribution to achieving the goals of Vision 2030, which aims to diversify income sources and empower the business sector.” He described Kafalah as a pioneering example of public-private cooperation, designed to improve access to finance and address challenges faced by businesses.

Since 2006, the program has approved over 71,400 guarantees worth SR89.5 billion and supported about 26,500 SMEs. It has helped provide over SR125.3 billion in financing, showing its strong impact on Saudi SMEs.

The entertainment sector has grown fast, with financing up 98% in the second quarter of 2025. Kafalah supported 32 entertainment businesses with guarantees over SR79 million, and the number of companies helped in this sector grew 78% from last year. By the end of Q2, 94 businesses had received more than SR304 million in financing, backed by guarantees of SR225 million.

Kafalah works with the SME Bank and the National Development Fund to provide guarantees to banks and lenders, helping small businesses get funding even when loans are hard to secure. In the past five years, the program has added nearly SR27 billion to Saudi Arabia’s GDP, showing its important role in growing businesses and supporting the economy.

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