Establish a small and medium enterprises bank to increase financing

The plan of the Small and Medium Enterprises Authority (Monsha’at) during 2021 included three basic goals to support the sector on which the official authorities rely to support the national economy in the next stage. This includes the establishment of the Small and Medium Enterprises Bank to increase financing, after achieving a qualitative leap in this field and exceeding the target recently. Monsha’at is also working to hold an international franchise exhibition to increase the share of this sector in the market, especially since the guarantees of success of these projects are great based on previous experiences and experiences, and the establishment of a support system for fast-growing enterprises to provide advisory support, and the support system is of great importance in the sector to reduce cases of default Early exit from the market due to difficulties in financing, marketing and management.

Financing of small, medium and micro enterprises in the Kingdom jumped by 52.4% by the end of the third quarter of 2020 on an annual basis, with an increase of 60.59 billion riyals over the size of the facilities provided at the end of the same period last year. The total facilities provided by the banking sector and financing companies increased to 176.2 billion riyals at the end of the third quarter, compared to 115.61 billion riyals at the end of the same quarter of 2019. The share of these facilities in financing increased to 8.7% by the end of last year, while the target was only 5%. Thanks to the diversity of supporters.

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