Kafalah program for SMEs signs agreement with Saudi Finance Company

Kafalah, the Saudi SMEs loan guarantee program, has so far signed deals with five major financing institutions. (SPA)
Updated 29 March 2019
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Kafalah program for SMEs signs agreement with Saudi Finance Company

  • The Saudi SMEs loan guarantee program has so far signed deals with five major financing institutions
  • The Kafalah program is also giving special attention to helping women in business

RIYADH: As part of its initiative to encourage financial institutions to invest in a greater number of small and medium enterprises (SMEs), the Kafalah program has signed an agreement with Saudi Finance Company.

In its efforts to help achieve the Vision 2030 objective for SMEs to contribute 35 percent of the nation’s gross domestic product, Kafalah, the Saudi SMEs loan guarantee program, has so far signed deals with five major financing institutions, in addition to all Saudi banks and Emirates Bank.

The program — the name of which comes from an Arabic word that means a guarantee or formal assurance that certain conditions will be fulfilled relating to a product, service or transaction — offers help to entrepreneurs to launch or grow their businesses. First they submit a financing request to one of the institutions that partners with Kafalah. If the lender needs guarantees to cover the risks associated with lending to new or developing businesses, it can request such a guarantees from the program.

If the program approves the request, it selects one of four specially designed products to meet the needs of the institution and the entrepreneur.

One of its products is designed for start-ups, offering extended support to build a strategic relationship with the General Authority for Small and Medium Enterprises and help meet their funding needs during  early growth.

The Kafalah program is also giving special attention to helping women in business; by the end of 2017, businesswomen accounted for 5 percent of the work of the program. To help achieve Vision 2030’s objective to empower businesswomen and encourage their increased participation in SMEs, the program offers preferential benefits to enterprises that are at least 50 percent owned by women.

A recent Kafalah report revealed that between the launch of the program in 2006 and the end of 2018 24,268 guarantees were issued for 6,291 establishments, worth almost SR 13.5 billion ($3.6 billion) and covering total financing worth SR 25.6 billion.

The program aims to support all types of businesses in diverse sectors such as tourism, entertainment, manufacturing, services, trading and agriculture. The construction sector is the largest single beneficiary, with 5,300 requests since 2006, followed by trading. The report also revealed that in terms of geography, the highest number of requests came from businesses in Riyadh, followed by the Eastern Region.

In 2018, Kafalah achieved a growth rate of 64 percent in the value of guarantees and 47 percent in the total amount of financing, compared with 2017.


Crochet is more than a hobby for Saudi women

Updated 19 sec ago
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Crochet is more than a hobby for Saudi women

  • Younger makers are rediscovering heritage through patience, skill and design

 

 

Byline: RIYADH

Across Saudi Arabia, a revival is unfolding as young people rediscover crafts traditionally associated with older generations and give them new life.

Among these crafts, crochet has emerged as a symbol of creativity and continuity. For many artisans, each stitch carries memory, identity, and emotional connection. 

For Harayer Al-Shammari, founder of Orchid Crochet (@Orchid_657 on Snapchat), crochet is a family legacy. Her first memories of the craft are of her late mother weaving intricate designs. “I was only 11, quietly watching her work,” she told Arab News. “One day she asked, ‘Do you want me to teach you?’ Of course, I said yes.”

What began as imitation became inheritance. “I love it and I am passionate about everything within the realm of crochet,” she said. 

Al-Shammari noted that the craft seems to be growing in popularity again. “There is more interest now, especially among young girls,” she said.

In our fast-paced, digitally-connected world, crochet has also become a form of mindfulness. Each piece requires patience, from two hours for smaller pieces to as long as four days for handmade dolls. For many creators, crochet offers a counterbalance to constant online engagement. 

“It gives me peace and enjoyment,” said Ghadi, the artist behind Ghadi Crochet (@Ghadicro1 on Snapchat). “It helps me make good use of my time instead of wasting it.”

But the online world also benefits today’s makers. “I started selling my work because I wanted people to see the art I create,” Al-Shammari said. Social media enabled her to attract attention to her work.

Today, crochet’s most active spaces are often digital. Al-Shammari shares her creations online, drawing inspiration from YouTube tutorials and connecting with followers across multiple platforms.

“It’s helped me a lot,” she said. “I get ideas, share my pieces, and even meet students who want to learn.”

Ghadi also credits digital platforms for her growth. “People’s comments and positive feedback on Instagram and TikTok make me want to improve.”

As the handmade market expands, others are following similar paths. For makers like Ghadi, encouragement from family turned passion into a small business, demonstrating how heritage and entrepreneurship can coexist. What was once a solitary activity is now a shared language.

Al-Shammari’s designs, ranging from table covers and dolls to teapot cozies and floral pieces, often reflect patterns inspired by Saudi homes and traditions. Younger makers like Ghadi tend toward minimalist styles but share the same emphasis on individuality.

Their work attracts customers who value handmade detail and customization, turning simple threads into personal expressions. Crochet is not purely decorative; it is expressive. 

Running a small creative business comes with challenges. “Delivery is the hardest part,” Ghadi said. “It’s limited to my city or nearby areas.”

Still, her optimism mirrors that of others across the Kingdom who find strength in doing what they love.

Al-Shammari focuses her energy not only on production but on empowering others.

“I taught a two-week crochet course at an orphanage,” she said. “A few days later, the director told me some girls wanted to continue learning, so I taught them online.”

Crochet in Saudi Arabia has transformed from a domestic art to a living symbol of resilience and reinvention.

Each creation, whether stitched in a family home or streamed on social media, tells a shared story; one of women weaving their past into their future, loop by loop.

-ENDS-