RIYADH: The amount of funds granted by banks and guaranteed by the Kingdom’s Kafalah Program (SME Financing Guarantee Program) for small- and medium-sized enterprises has exceeded SR21 billion ($5.6 billion) until the end of 2017. The move is significant considering that one of the main goals of Vision 2030 is to raise the GDP contribution of SMEs in the Kingdom from 20 to 35 percent.
This was disclosed by Homam Abdul Aziz Hashim, Kafalah’s director general, on Saturday. Hashim said: “The Saudi banks collaborating with the program confirmed their strong commitment to empowering small- and medium-sized enterprises and facilitating their success, thereby contributing to the national economy.”
He said the Kafalah Program has brought forward more than 10,000 success stories covering a wide range of industries and sectors. In 2017 alone, the number of small- and medium-sized companies participating in Kafalah reached 1793, an increase of 4.9 percent compared with 2016, he added.
“The program aims to overcome an obstacle often faced by SMEs, namely the inability to access adequate funding or to provide the required bank guarantees.” Addressing this crucial topic, the program was established to cover the risk of the bank in case of failure of the enterprise, he noted.
He pointed out that the services of the program are being expanded, aiming to further increase the number of beneficiaries. “The issuance of a royal decree to assign an amount of SR800 million to drive the growth of the private sector is expected to make a major positive impact in this regard,” he added. Through the launch of new products, Kafalah seeks to stimulate the financing of SMEs in line with the Kingdom’s Vision 2030, he said.
“From a modest start in its first year, when Saudi banks provided SR22 million in financing to 36 small and medium enterprises, today Kafalah is well positioned as a pioneering program which will contribute to achieving one of the most important objectives of the Vision 2030,” said Talat Hafiz, secretary general of the Media and Banking Awareness Committee and spokesman of the Saudi banks.
Hafiz said: “The steady increase in the number and value of guarantees and the high demand by participating banks showcases the success of the forward-thinking concept of the program, with the main objective being the development of this crucial sector of the local economy in lockstep with many developed nations such as the US and the European Union.”
Kafalah Saudi program reaches 10,000 SMEs milestone
Kafalah Saudi program reaches 10,000 SMEs milestone
Klija Festival in Buraidah empowers small businesses
- Half a million attend 15-day celebration of heritage; event creates 1,500 seasonal jobs
RIYADH: The 17th Klija Festival in Buraidah drew more than half a million visitors during its 15-day run, celebrating the region’s heritage and entrepreneurial spirit.
Organized by the Qassim Chamber of Commerce, the event highlighted small businesses, providing a platform for entrepreneurs to showcase local products.
More than 340 sales outlets, marketing corners and points of sale welcomed attendees, while the festival provided 1,500 seasonal job opportunities, the Saudi Press Agency reported.
The small business pavilions featured families in the cottage industry, artisans and startups presenting traditional foods, and handicrafts and heritage items that reflect the region’s identity.
Participants said that the festival was a key marketing platform, boosting sales, increasing brand awareness, facilitating knowledge exchange and fostering connections with organizations supporting SMEs.
Mohammed Al-Hanaya, Qassim Chamber secretary-general and festival supervisor, said that the event brought together families, artisans, SMEs, companies and institutions, stimulating commercial activity, opening direct marketing channels and enhancing economic returns.
He added that the festival provided seasonal jobs for more than 1,500 young men and women across operations, marketing and services, supporting the labor market, empowering national talent, and connecting youth to the events and creative economy.
Klija, a traditional cookie made from wheat flour, dates or sugar, date syrup and natural ingredients such as cardamom and lemon, is a rich source of energy, carbohydrates, dietary fiber and natural proteins.
A cultural icon rooted in Qassim’s traditions, the cookie has gained international exposure through the festival, expanding the availability of packaged products.
Starting next year, the festival will be renamed the International Klija Festival, a rebranding approved by Qassim Gov. Prince Faisal bin Mishaal, who described it as a “successful model for turning local initiatives into global economic engines.”
This year’s festival, held at the King Khalid Cultural Center, included international participants from Egypt, Turkiye and Morocco, marking its evolution into a cross-cultural platform.
