Saudi Arabia’s SME Bank disburses SR1 billion in financing to SMEs, introduces new products
Saudi Arabia’s Small and Medium Enterprise Bank (SME Bank) has been making significant strides in supporting the growth of small businesses in the Kingdom, with the latest figures showing that it has disbursed SR1 billion ($267 million) in financing since its launch in December 2022.
The SME sector is crucial for Saudi Arabia’s economic diversification efforts, as it promotes innovation, job creation, and sustainable growth across various industries. Recognizing the importance of SMEs, the Kingdom has introduced various initiatives to support their development.
Abdulrahman bin Mohammed bin Mansour, acting CEO of the SME Bank, highlighted the vital role that SMEs play in the Saudi economy, as they make up 99 percent of businesses in the country. The establishment of the SME Bank by the Kingdom’s Cabinet in 2021 aims to strengthen the SME sector and contribute to the goals outlined in Vision 2030.
To further support entrepreneurship, the SME Bank has introduced new financing products and collaborated with organizations like the Kafalah Program and Saudi Venture Capital Company to provide necessary funding for SMEs. The bank has also developed innovative financing models to address the challenges faced by small businesses in accessing financing.
In addition to financial support, the SME Bank is also focusing on digitization, with plans to develop a comprehensive digital strategy that includes digital financial services, data centers, and value-added services. This digital transformation aims to make financing solutions more accessible and efficient for SMEs.
Furthermore, Saudi Arabia’s venture capital (VC) investment landscape has been growing rapidly, with the Kingdom’s share of total VC investment in the Middle East and North Africa region increasing significantly in 2023. This growth in VC funding reflects the strength and resilience of the Saudi economy and its attractiveness to investors.
Overall, the progress made by the SME Bank and the Kingdom’s efforts to support small businesses demonstrate its commitment to fostering entrepreneurship, innovation, and economic growth. With a strong focus on digital transformation and venture capital investment, Saudi Arabia is positioning itself as a key player in the global economy.
