https://arab.news/cctr9
- Abdulrahman bin Mansour, chief executive officer of the SME Bank, said the deals were aimed at boosting the growth and sustainability of the SME sector in line with Saudi Vision 2030
- The Saudi Investment Co. for Bold Investments has signed three investment agreements worth SR232 million
RIYADH: The Small and Medium Enterprises Bank, affiliated with the National Development Fund, has signed 20 collaboration and investment agreements with various financial technology entities, investment funds, and e-commerce platforms, totaling more than SR1.1 billion ($293 million).
Abdulrahman bin Mansour, chief executive officer of the SME Bank, said the deals were aimed at boosting the growth and sustainability of the SME sector in line with Saudi Vision 2030.
The bank has allocated SR10.5 billion to support SMEs over the next three years and has announced the allocation of an additional SR500 million to activate the role of financial technology companies.
Among the agreements are 10 contracts and memoranda of understanding worth SR500 million.
The Saudi Investment Co. for Bold Investments has signed three investment agreements worth SR232 million. Additionally, the Kafalah Financing Guarantee Program for SMEs has inked seven MoUs worth SR300 million, with a financial leverage of up to five times.
The signed agreements and memoranda include partnerships with Lindo, Manafea, Raqqamiya, Fursa, Taamid, Sukuk, Lamma, Jahiz, Silla, and Zed.
The Saudi Investment Co. for Bold Investments has formed joint investments with the Korean Bold Investment Co., Shorouk Partners Fund, and Partners for Growth.
In addition, the Kafalah program has signed seven MoUs with Taamid, Lamma, Lindo, Hala, Raqqamiya, Fursa, and Mansati platforms.
In the first quarter, the bank provided funding of more than SR1.1 billion to in excess of 300 SMEs, while the total investments of the Saudi Investment Co. for Bold Investments reached SR1.75 billion, with 32 invested funds and 674 invested startups and SMEs.
Mansour noted that the bank’s partners had funded more than 300 SMEs with a total value exceeding SR1.1 billion in the first quarter of this year.
The Saudi Venture Capital Co. played a significant role in 2022, achieving a growth rate of 72 percent in venture capital investment. As a result, the Kingdom has become one of the leading countries in the Middle East and North Africa region, with SVC contributing to the region’s total investments, which reached SR1.75 billion.
SVC has established partnerships with more than 30 local and international investment funds.
Mansour said that brought the total number of supporting entities to 50, providing SMEs with additional financing options through crowdfunding platforms such as Fintech.
By the end of the first quarter of this year, SVC had invested in more than 160 startups, amounting to a total of SR1.7 billion through collaborations with local and international funds.
The financing value in the Kafalah program increased by 17 percent in the first quarter, reaching a total financing value of more than SR80 billion, benefiting at least 19,000 establishments.