Saudi banks' financing for SMEs has tripled
September 13, 2019, 10:49 am

Saudi banks' financing for SMEs has tripled

The volume of bank financing for small and medium enterprises tripled to 6.2 percent to reach 133 billion riyals ($ 35.4 billion), compared with the private sector financing of 1.4 trillion riyals ($ 373.3 billion).

"The growth of bank financing for SMEs rose from 2 percent two years ago to more than 6.2 percent. Financing exceeded 133 billion riyals," said Talaat Hafez.

Hafez pointed out that Saudi banks have other financing channels, known as the SME Guarantee Program, pointing out that the ratio of total debt of Saudi banks portfolio to private sector institutions amounted to about 1.9%.

He stressed that this rate was very low compared to the volume of huge financing exceeding 1.4 trillion riyals ($ 373.3 billion), and was among the lowest ratios of debt, compared to the banking sectors in the world.

He stressed that banks have paid full attention to contributing to the strong development of this sector, based on its importance and in line with the goal of Saudi Vision to increase the contribution to GDP by 35 percent in 2030.

Meanwhile, the Riyadh Chamber of Commerce and Industry, represented by the Investment and Securities Commission, organized a lecture on Thursday on banking services for SMEs, in cooperation with the Saudi Banks Committee for Awareness and Banking Information.

Mallawi Al-Subaiei, Commercial Banking Manager at Riyad Bank, said that Saudi banks offer SMEs additional incentives at low interest rates for projects that comply with Vision 2030, as well as specific incentives for projects in less developed regions.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has announced its sponsorship of the “Innovation and Sustainable Technology Solutions Competition (GU - IST Solutions), hosted by Gulf University at its main campus.
This strategic sponsorship reflects BENEFIT’s active role in advancing technological innovation and fostering sustainable solutions to future challenges. It also seeks to empower Bahraini youth by enhancing their skills, capabilities, and competitiveness in innovation and solution development—contributing meaningfully to the broader goals of sustainable development across all sectors.
As part of BENEFIT’s active involvement in the competition, the company has announced that Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication, will serve on the competition’s supervisory committee. Her upcoming participation reflects BENEFIT’s forward-looking commitment to championing academic and professional excellence.
Commenting on the occasion, Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication at BENEFIT, said, “We are privileged to support this pioneering initiative, which aligns seamlessly with BENEFIT’s enduring commitment to fostering innovation and nurturing the potential of Bahrain’s youth. Our participation is rooted in a deep sense of social responsibility and a firm belief in the pivotal role of innovation in shaping a sustainable future. Through such platforms, we seek to empower the next generation with the knowledge, skills, and foresight required to develop impactful solutions that address future challenges, in line with the United Nations Sustainable Development Goals 2030.”
Dr. Aseel Al Ayash Dean of the College of Engineering in Gulf University commented, “We extend our sincere gratitude to BENEFIT for their generous sponsorship and support of the Innovation and Sustainable Technology Solutions Competition. This contribution plays an instrumental role in helping us achieve the strategic goals of this initiative, namely, cultivating a culture of innovation and sustainability, encouraging efforts that address the imperatives of sustainable development, and enhancing the practical and professional capabilities of our students and participants.”
The event will bring together a diverse spectrum of participants, including secondary school students, university undergraduates, engineers, industry professionals, entrepreneurs, academic researchers, and subject matter experts representing a wide range of disciplines.
The competition seeks to inspire participants to develop and present innovative, sustainable technologies aimed at addressing pressing environmental, social, and economic challenges. It encourages the formulation of business models that integrate advanced technological solutions with core principles of sustainability. Moreover, it serves as a platform for emerging leaders, entrepreneurs, and innovators to contribute to the advancement of the Sustainable Development Goals, promote the ethos of responsible technology, and demonstrate its transformative potential across various sectors.
Attendees will have the opportunity to view a series of project presentations submitted by participants, covering diverse areas such as eco-friendly product design, smart and sustainable innovations, renewable energy technologies, water conservation and management, waste minimisation and recycling, green architectural solutions, and sustainable transportation systems. Outstanding projects will be formally recognised and awarded at the conclusion of the event.