SME Bank, in a new partnership with Aramco Taleed and fintech firm Manafa, has launched a funding program to expand financing for small and medium-sized enterprises (SMEs) within Saudi Aramco’s ecosystem. The initiative aims to inject SAR 1.5 billion ($400 million) into the Kingdom’s industrial sector over the next five years.
Quick Facts
- Total funding value of SAR 1.5 billion ($400M).
- Targets SMEs in projects, manufacturing, and services sectors.
- Partnership between SME Bank, Aramco Taleed, and Manafa.
A Digital Push for Industrial SMEs
Announced in Dhahran, the collaboration is designed to give SMEs operating in Aramco’s supply chain faster access to capital. The goal is to improve liquidity and operational efficiency for businesses that often face challenges securing traditional funding.
The program offers a suite of Sharia-compliant products, including working capital financing, invoice financing, payroll financing, and purchase order financing. It features a streamlined digital experience with simplified procedures and repayment plans of up to 12 months.
Jamil Al Bagawi, Aramco Senior Vice President of Diversified Industries, commented on the strategic importance of the fund. “Through the Aramco Taleed program, we continue to deliver unique solutions for local SMEs. Through collaboration, we aim to enable the local SMEs associated with Aramco’s ecosystem to gain access to funding that supports their operational needs.”
Scaling a Proven Fintech Model
This initiative builds on an existing strategic partnership between SME Bank and Manafa that started in 2023. Their joint Agency Financing Program has already facilitated over SAR 1 billion in financing across more than 720 funding opportunities, underscoring the growing acceptance of alternative financing in the Kingdom.
Ibrahim Al-Rashid, CEO of SME Bank, described the new collaboration as a “step change in facilitating SMEs’ access to digital funding solutions.” He affirmed the bank’s commitment to enabling SME growth by addressing funding gaps and enhancing their competitiveness.
Abdulaziz Al-Adwani, CEO of Manafa, added, “Through these digital funding solutions, we are providing a seamless experience that enables SMEs to access tailored funding quickly, helping them overcome financial challenges and supporting their long-term sustainable growth.”
About SME Bank
The Small and Medium Enterprises Bank (SME Bank) is a Saudi development-focused financial institution. It aims to support the Kingdom’s SME sector by facilitating access to suitable funding, providing guarantees, and addressing operational challenges to enhance efficiency and competitiveness. The bank actively collaborates with private sector and fintech companies to broaden access to innovative and alternative funding solutions.
Source: Zawya
