Saudi Arabia’s Small and Medium Enterprises Loan Guarantee Program (Kafalah) provided loan guarantees totalling SAR 13.9 billion in 2024, benefiting 5,346 small, medium, and micro enterprises. The program issued over 7,000 guarantees, with financing exceeding SAR 18 billion—a 17% increase from the SAR 15.7 billion recorded in 2023.
Kafalah attributed the rising demand for loan guarantees to ongoing initiatives supporting SMEs and enhancements in operational efficiency through skilled national talent and innovative products tailored to target sectors. Collaborations with government entities have further ensured the sustainability of these initiatives, reinforcing the program’s role in achieving development goals.
Since its inception in 2006, Kafalah has approved over 63,000 guarantees, benefiting more than 22,000 SMEs, with total financing exceeding SAR 99 billion. The program aims to boost the national economy by providing financial guarantees that enhance SMEs’ access to necessary funding while mitigating lending risks for financial institutions through strategic partnerships and innovative technological tools.
These efforts align with Saudi Vision 2030’s objective to diversify the economy and promote sustainable development. The Financial Sector Development Program, a key component of Vision 2030, seeks to increase SME contributions to GDP from 20% to 35% by facilitating enhanced access to funding and encouraging financial institutions to allocate up to 20% of overall funding to SMEs by 2030.
