Saudi Arabia’s Kafalah financing guarantee program has provided more than SAR100B in guarantees to around 28,000 small and medium-sized enterprises, supporting total financing of over SAR140B, according to the announcement.
Ibrahim Al-Rashed, CEO of the Small and Medium Enterprises Bank, said the program has helped expand access to credit by reducing lending risks for financing institutions. The guaranteed facilities represent about 8% of total financing extended to SMEs in the Kingdom, which reached SAR489B by the end of the first quarter of 2026.
The program has also been linked to business growth. Fifty-one medium-sized enterprises moved to Saudi Arabia’s parallel market, Nomu, while 8% of micro-enterprises progressed into the small or medium-sized categories. Another 4% of small enterprises moved into the medium-sized segment.
A study conducted with the research center at King Fahd University of Petroleum and Minerals found that companies benefiting from Kafalah recorded 17% higher employment than comparable businesses that received conventional financing. The study also estimated the program’s contribution to gross domestic product at SAR27B over the past five years.
The Small and Medium Enterprises Bank, supervised by the National Development Fund, said it is continuing to expand financing tools and cooperation with funding providers to meet the needs of businesses at different stages of growth.
Source: Jawlah
