The General Authority for Small and Medium Enterprises (Monshaat) confirmed that the Small and Medium Enterprises Bank, which the Cabinet approved to establish, aims to raise financing rates and provide services electronically without the need to establish branches. It also works to enhance the contributions of financial institutions in providing innovative financing solutions and achieving financial stability To be a basic pillar of economic development and a key enabler of Vision 2030.
The bank focuses on providing all its products and services in digital form without the need to establish branches, which contributes to the delivery of services to all promising areas, as well as the application of international best practices in cooperation with international and local partners. To build a product portfolio relevant to each segment.
For his part, Vice Chairman of the Board of Directors of the National Development Fund, Muhammad Al-Tuwaijri, said: The presence of a bank for small and medium enterprises will contribute positively to the local economy by bridging financing gaps and enabling micro, small and medium enterprises, through digital channels that provide financing services to all major regions. And promising. Al-Tuwaijri added, in a statement to the fund, that the Small and Medium Enterprises Bank will play a pivotal role in the development of micro, small and medium enterprises by providing appropriate financing solutions to support this segment and raise its contribution to the GDP.
And he indicated that the bank is based on contributing to raising the share of these establishments from the total financing and enhancing the contribution of Saudi financial institutions in financing this segment of high economic importance and stimulating its growth and expansion of its business. The bank’s launch is in line with the national strategy for small and medium enterprises that “Monshaat” worked on, which included 16 initiatives. Basic and 9 pivotal initiatives, one of which is the establishment of the bank, while 3 specific initiatives designed by “Monshaat” formed the core of the bank, namely the indirect lending initiative with a capital of 1.6 billion riyals, the establishment of the Saudi Venture Investment Company with a capital of 2.8 billion riyals, and raising the capital of the “Kafalah” program to 1.6 One billion riyals, and the total amounts disbursed in the indirect lending initiative since the launch of the initiative until the end of 2020 AD reached two billion riyals, while the amounts approved for investment exceeded one billion riyals, and the total value of financing guarantees through the financing guarantee program for small and medium enterprises “Kafalah” from the year 2018 until the end of 2020 AD to 32.2 billion riyals.