https://arab.news/p75k6
RIYADH: On the first day of Biban 24, a total of 17 agreements and memoranda of understanding were signed, alongside the launch of financial initiatives valued at more than SR18 billion ($4.79 billion).
These deals and financing portfolios were finalized during the Riyadh event, organized by the General Authority for Small and Medium Enterprises under the theme “A Global Destination for Opportunities.”
The forum aims to empower small and medium enterprises and entrepreneurs by enhancing their access to financial support, ultimately fostering growth in this vital sector of the national economy, as reported by the Saudi Press Agency.
Monsha’at secured cooperation agreements with several leading local financial institutions, including Riyad Bank, which committed to a financing portfolio worth SR3 billion; Al-Rajhi Bank, with SR2.9 billion; and Bank Albilad, offering SR2.85 billion. Additional agreements were signed with Bank AlJazira (SR1 billion), Alinma Bank (SR800 million), Banque Saudi Fransi (SR700 million), and Abdul Latif Jameel Co. (SR25 million).
These efforts align with Monsha’at’s ongoing mission to strengthen the growth and competitiveness of SMEs by partnering with key players from various sectors, both locally and internationally.
The overarching goal is to create a conducive environment for growth and build a leading society.
As of 2023, SMEs in Saudi Arabia accounted for 28.7 percent of the country’s total gross domestic product, reflecting an 8.7 percent increase from previous figures, though still falling short of the Vision 2030 target of 35 percent, according to data from Statista.
In the realm of financing and expanding support for projects, several other announcements were made on the first day. The Saudi National Bank unveiled a financing portfolio of SR3 billion, while Saudi Awwal Bank reported SR1 billion. The Arab National Bank also announced a SR1.1 billion financing portfolio, along with the launch of an e-commerce financing product worth SR500 million.
Additionally, the Small and Medium Enterprises Bank revealed that it would allocate SR1 billion to finance SMEs in the fourth quarter of 2024. This funding will be distributed through approved financing models in collaboration with various partner institutions. The bank also introduced a dedicated financing program for SMEs in the education sector, developed in partnership with the Ministry of Education and commercial banks.