RIYADH: Small and medium enterprises in Saudi Arabia are on course to obtain adequate financing and achieve stability and growth thanks to a new agreement with an Indian institution.
This comes as the Kingdom’s Small and Medium Enterprises Bank entered into a collaborative agreement with India’s Small Industries Development Bank. The partnership was formalized during the India-Saudi Investment Forum in New Delhi, as reported by the Saudi Press Agency.
The agreement aligns with one of the SME Bank’s key objectives, which is to draw upon successful practices and exceptional models in the SME sector to facilitate adequate funding and promote the prosperity of small and medium-sized enterprises.
Furthermore, it builds upon the memorandum of understanding inked with the Indian Bank last December. It led to the organization of several workshops, projects, and collaborative visits between the two entities, aimed at advancing the foundations of this cooperation.
It also represents a continuation of the SME Bank’s ongoing efforts to increase financing for the SME sector, address the financing gap, and enhance the role of financial institutions in offering innovative financing solutions.
It aligns with the bank’s broader endeavors to promote financial stability within the sector, positioning it as a fundamental driver of economic development in the Kingdom and a facilitator of the goals outlined in Saudi Vision 2030.
The newly signed agreement involves both parties collaborating closely to design and develop a data engineering strategy in alignment with industry best practices.
Furthermore, as part of the agreement’s terms, the SME Bank and SIDBI will engage in knowledge transfer initiatives related to credit practices for lending to SMEs and financial institutions.
The agreement is expected to enhance the awareness and training collaboration between the SME Bank and SIDBI Bank. It will involve organizing a comprehensive training program for employees to facilitate their understanding of the best practices employed by both parties in their operational domains.
Almost 400 Saudi and Indian businessmen participated in the event, which featured 10 workshops and bilateral meetings to explore business cooperation opportunities.
The event involved the exchange of MoUs and the issuance of licenses to private sector entities, facilitating collaboration between the Saudi and Indian sides.
The business gathering also addressed Saudi Arabia’s provision of financial and non-financial incentives and support mechanisms, aimed at fostering the sustainable development of targeted sectors and promising industries.
