Riyadh – Sharikat Mubasher: The Kafalah Program for Financing Guarantees of Small and Medium Enterprises announced plans to launch new financing products as stated by Homam Abdulaziz Hashem, Kafalah's CEO.
The CEO told Al Eqtisadiah that the program will launch the ‘financing wallets guarantee’ and ‘green financing’, two new products to be added to many provided by the program in support of SMEs.
Hashem said that the Kafalah Program managed to directly contributing to the GDP with SAR 25 to 27 billion during the last 4 years.
By far, the program offered guarantees that exceed SAR 109 billion for SMEs.
The Small and Medium Enterprises Loan Guarantee Program “Kafalah" was founded under the Minister of Finance's decision no. (1166) dated 04/05/1425 AH, with a view to overcome any obstacle in financing SMEs that are economically viable but that do not have the ability to provide the required guarantees to the financiers.
Kafalah aims to help SMEs obtain the necessary financing to develop and expand their activities and encourage the financial institutions to deal with the SME sector, in addition to attracting a new group of SME owners that have not previously dealt with financiers, with a view to developing the SMEs sector to realize its important role in the national economy through its contribution to providing new job opportunities, developing provinces that are least active economically.
