The SME Financing Guarantee Program, Kafalah, operating under Saudi Arabia’s Small and Medium Enterprises Bank (SME Bank), has officially launched its “Moahel” initiative. The announcement was made during the Biban 2025 forum, marking a significant step in the Kingdom’s ongoing efforts to support the growth and sustainability of its SMEs by enhancing their access to appropriate financing solutions.
Streamlining Access to Capital
The “Moahel” initiative is designed to tackle a critical challenge for many startups and SMEs: financial readiness. Its primary objective is to better prepare entrepreneurs and their businesses for the funding process by providing tools to assess their eligibility for financing and clarifying the specific requirements of lending institutions. This proactive approach aims to significantly increase the chances of securing capital efficiently and smoothly.
By helping business owners analyze and improve the quality of their credit profiles, Moahel directly addresses a key barrier to entry for many firms seeking growth capital. This developmental program is a core part of Kafalah’s strategy to enhance the overall efficiency and empowerment within the Kingdom’s financing ecosystem.
A Digital-First Approach for Vision 2030
Embracing the national push towards digital transformation, the Moahel initiative is delivered through a simple and innovative digital platform. Business owners can conduct their financing readiness assessment electronically through the Kafalah portal. This flexible, user-friendly solution aligns perfectly with the goals of Saudi Vision 2030, which emphasizes empowering the private sector and leveraging technology to build a robust economy.
Strengthening the SME Financing Ecosystem
The launch of Moahel underscores the integrated efforts of Kafalah, the SME Bank, and the National Development Fund to cultivate a stimulating and sustainable financing environment. Kafalah continues to play a pivotal role by providing financial guarantees that reduce lending risks for financial institutions, thereby expanding funding opportunities for SMEs.
Through strategic partnerships, innovative tech tools, and a comprehensive knowledge base, the program is building a more resilient framework for SME growth. This initiative is expected to empower small and medium-sized enterprises to scale their operations and contribute more effectively to the nation’s economic development.
About The Kafalah Program
The SME Financing Guarantee Program (Kafalah) is a key initiative under Saudi Arabia’s SME Bank. It aims to facilitate financing for small and medium-sized enterprises by providing financial guarantees to lenders. By mitigating the risks associated with SME lending, Kafalah encourages financial institutions to increase their financing portfolios for the sector, thereby fostering economic growth and diversification in line with Saudi Vision 2030.
Source: Mubasher Banks
