Riyadh – Sharikat Mubasher: Saudi Arabia’s The Small and Medium Enterprises Loan Guarantee Program (Kafalah) is aiming to boost its financing guarantee issuances to between SAR 20 billion and SAR 22 billion over 2025 and 2026, Homam Hashem, its CEO, told Al Eqtisadiah.

In 2024 alone, Kafalah issued financing guarantees worth SAR 13.9 billion, supporting 5,346 small and medium-sized enterprises (SMEs) with more than 7,000 guarantees, as part of its mission to strengthen the SME financing sector.

Hashem noted that Kafalah is preparing to launch new initiatives targeting promising sectors, including environmental projects aligned with Saudi Arabia’s sustainability goals, and sports-related ventures to support the Kingdom’s journey toward hosting the 2034 FIFA World Cup.

The program is also expanding into several high-potential sectors tied to Saudi Vision 2030 initiatives, aiming to bridge financing gaps as SME demand continues to grow.

Since its launch in 2006, Kafalah has issued over 67,700 guarantees, benefiting more than 25,000 SMEs, with total financing exceeding SAR 115 billion against guarantees worth SAR 82 billion.

In the first quarter of 2025, Kafalah issued 1,900 guarantees valued at more than SAR 4.8 billion, up 19% compared to SAR 4 billion during the same period in 2024.

Breaking down sector-specific performance, Hashem revealed that 482 SMEs benefited from Kafalah’s tourism sector product, securing guarantees worth over SAR 810 million and financing of more than SAR 1 billion in 2024. In the entertainment sector, 18 SMEs received guarantees worth SAR 45.7 million and financing exceeding SAR 54 million.

In the technology sector, 119 SMEs benefited, receiving guarantees totaling more than SAR 530 million and financing surpassing SAR 811 million.

Through its various initiatives, Kafalah plays a vital role in strengthening financing across strategic sectors, contributing to economic diversification and advancing the goals of Saudi Arabia’s Vision 2030.