Saudi Arabia’s General Authority for Small and Medium Enterprises, Monsha’at, has signed a cooperation agreement with STC Bank covering a financing portfolio worth SAR 5 billion to support micro, small and medium-sized businesses.
The agreement was signed on the sidelines of the Money20/20 conference in Riyadh. According to Monsha’at, it aims to expand access to Sharia-compliant digital financing products across different economic sectors.
The financing program will offer short-, medium- and long-term facilities of up to 10 years. Eligible uses include working capital, operating needs, asset and equipment purchases, point-of-sale receivables, contracts and projects, and support for e-commerce businesses.
The agreement also covers invoice and accounts receivable financing, business credit cards, supply chain finance, and trade finance services through guarantees and letters of credit.
Monsha’at said the partnership is part of its efforts to develop Saudi Arabia’s SME sector and provide entrepreneurs with financing tools that support business growth and sustainability, in line with the objectives of Saudi Vision 2030.
Source: Ajel
