As part of its ambitious economic transformation agenda, Saudi Arabia is significantly boosting its tourism sector by unlocking over $1.07 billion in new financing partnerships. The initiative, led by the Tourism Development Fund (TDF), is designed to provide critical capital to micro, small, and medium enterprises (MSMEs), empowering a new generation of entrepreneurs to drive growth in the kingdom’s burgeoning tourism landscape.
A Strategic Push for Tourism MSMEs
Announced during the National Development Fund’s Momentum 2025 event, the TDF unveiled six new agreements and a Memorandum of Understanding (MoU) with a range of public and private sector partners. These initiatives fall under the broader Tourism Empowerment Programs, which aim to widen access to capital for small businesses operating within the tourism ecosystem.
The programs have already demonstrated considerable impact, having previously delivered nearly $800 million in funding. This support has been instrumental in the creation of more than 74,000 jobs across Saudi Arabia, underscoring the vital role of MSMEs in achieving the goals of Vision 2030.
Key Partnerships Unlocked
The latest round of agreements includes an expanded collaboration with the Kafalah Program, building upon a successful history that saw earlier guarantees worth $533 million support over 2,000 tourism enterprises. A new program, valued at an estimated $187 million, will engage with more than 45 financing entities to scale support for MSMEs nationwide.
Further bolstering this financial ecosystem, the TDF signed an $80 million financing agreement with Arab National Bank. It also finalized four agreements worth a combined $53 million with several finance companies under its NBFI program, which builds on previous cooperation valued at $67 million. Additionally, the fund signed an MoU with the Small and Medium Enterprises Bank to develop a specialized financing model tailored to the unique needs of tourism businesses.
About The Tourism Development Fund
The Tourism Development Fund (TDF) was established to empower one of Saudi Arabia’s most rapidly growing industries. It plays a pivotal role in advancing the National Tourism Strategy and achieving the goals of Vision 2030 by providing financing and support to tourism-related micro, small, and medium enterprises. With over 10,000 enterprises already benefiting from its initiatives, the TDF is a central force in expanding the kingdom’s tourism ecosystem.
Source: Fast Company ME
