Al Rajhi Bank, Kafalah Fund ink deal to increase lending for SMEs

Al Rajhi Bank has signed a cooperation agreement with Kafalah Fund, a financing program for small and medium enterprises (SMEs), to provide a wider range of benefits to SMEs in line with the Saudi Vision 2030.

The new benefits include increasing lending to this segment and expanding SME beneficiaries to include tourism sector activities, businesswomen, and emerging enterprises, according to a statement on the official Saudi Press Agency (SPA).

This agreement is one of the outcomes of the plan launched by the Local Content and Private Sector Development Unit (Namaa) to stimulate private sector through raising the capital of the Kafalah Fund.

Homam Hashem, the fund’s chief executive, emphasized that the fund is keen on building partnerships with banks and financiers to help fund a larger number of SMEs.