Monshaat and Kafalah announce initiatives to support SMEs in Saudi Arabia

21 deals worth SR2.8 billion were concluded. (SPA)
Updated 21 November 2019
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Monshaat and Kafalah announce initiatives to support SMEs in Saudi Arabia

  • Monshaat is set to launch a bank for SMEs

DAMMAM: The Small and Medium Enterprises General Authority (Monshaat) has stressed its keenness to support small and medium enterprises (SMEs) through initiatives, programs, and activities, including consulting, follow-up, training and awareness-raising, the Saudi Press Agency (SPA) reported on Thursday.

Monshaat is set to launch a bank for SMEs and establish an electronic link between SMEs, the authority and funding agencies, in addition to allocating funds to achieve the principle of sponsorship adopted by the government program Kafalah.

This came on Wednesday during the workshop organized by the Eastern Province Chamber of Commerce and Industry. This workshop, held at the chamber’s headquarters in Dammam, was attended by Monshaat’s Director of Corporate Finance Badr Al-Radhan and the representative of Kafalah, Mohammed Al-Khuwaiter.

Al-Radhan said that Monshaat had adopted many initiatives worth about SR12 billion ($3.2 billion). These include venture capitals, indirect loans, recovery of government fees, and the enhancement of the Kafalah Program.

He pointed out that 21 deals worth SR2.8 billion were concluded under these programs, with the amounts approved for investment by Monshaat exceeding SR1 billion.

Al-Radhan added that the targeted sectors were the well-known economic activities, most notably agriculture, accommodation and catering services, administrative and support services, transport and storage, real estate, education, health, manufacturing, arts and entertainment, information and communications, and others.

He stressed that Monshaat was in the process of evaluating its performance while taking into account several indicators, including the percentage of loan utilization for the target sectors.

Al-Radhan spoke about the SME bank that Monshaat is set up to launch, highlighting that this initiative aims to improve access to funding and empower key financial institutions to provide more funding, support Vision 2030, and contribute to the financial sector development plan. He referred to the cooperation between Monshaat and 35 governmental and non-governmental bodies to inform beneficiaries of financing options for entrepreneurs, and mechanisms to benefit from them.

Al-Khuwaiter said that the Kafalah program, founded in 2006 as a joint development initiative between the Ministry of Finance and Saudi commercial banks to help overcome SME financing constraints, covered the guarantee of a percentage of the risk in the event of a sponsored activity’s failure to repay part or all of its funds.

He emphasized that the program has partnerships with 30 bodies, including 26 banks and financing institutions, and four government agencies.

Al-Khuwaiter added that until the third quarter of this year, Kafalah had sponsored 7,321 establishments, which received about SR30.9 million, with guarantees issued by the program reaching SR16.9 billion.
 


Dhahran’s women-led farmers’ market is back

Updated 10 sec ago
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Dhahran’s women-led farmers’ market is back

  • Juthoor unites local producers, farmers, families under winter sky

DHAHRAN: Juthoor is back, bringing together a mix of local artisans, farmers and food vendors. The outdoor market runs until Jan. 18, giving families ample time to browse, shop and linger.

With cool winter breezes, outdoor seating and live music, the market provides an inviting setting to enjoy the fresh air and locally made goods. 

Juthoor was founded by three lifelong friends: Ghsoon Al-Belushi, Noura Al-Dulaijan and Reem Al-Suqair. They set out to recreate the kind of community market they had enjoyed abroad but struggled to find locally.

One of the busiest booths has been Dammam’s Ana Starter Sourdough Factory, where visitors have sampled chocolate sourdough. Founder and CEO Aisha Alomair said Juthoor had played a key role in the brand’s growth.

She told Arab News: “Juthoor is the best market for us. This is our third participation and actually our first year being an official sponsor. With Zadk, the (local) culinary academy, we do a live grilled cheese station. It is soup season — we can’t miss this opportunity!” 

Alomair said markets like Juthoor offered a vital entry point for small businesses, and added: “Not everyone has the high capital to start a factory or to start a restaurant or start a cafe. That’s too expensive, right? Especially coming from an average background, you won’t be able to really get those expenses and really start something that big.”

She now sells 13 kinds of sourdough at Juthoor, including a hawawshi loaf made with local dates, which has proved a favorite. What began as a home business has grown into a family effort, with relatives helping to run the stand while others participate in nearby festivals.

Ana Starter Sourdough Factory started via a passion for creating and fermenting the healthiest bread and introducing it to the Saudi market, said Alomair.

She added: “The breads that were available at the supermarkets or at local bakeries had instant yeast that never really took time to ferment and, therefore, when you consume the average bread, you notice some stiffening, you notice indigestion, you notice bloating and heartburn.”

When she became the “bread winner” she brought her whole family in to share the dough. And they are by her side now.

She said: “Right now, we have the Saudi Date Festival in Al-Ahsa — my mom is actually there with my daughter. I (have) got my son here with me in Juthoor.”

The market’s focus on health, community and local talent stands out. 

“The weather is fantastic. The place is beautiful. The best thing is, if you notice, all the organizers are women,” she added.

Al-Belushi, one of the co-founders of the event, told Arab News about the commitment to continuing the mission to create the change they wished to see when they started Juthoor in 2019.

They still prioritize finding Saudi vendors who create produce they would want to buy themselves.

She said: “We wanted to focus on quality, not quantity, so that’s why we have a very small number of stalls.”

This year there are 10 in the farmers’ market area; 25 in the local market; eight abaya stalls, and around 10 food vendors, along with live cooking classes.

Al-Belushi said: “It’s always been in this location (Prince Saud bin Naif Park). It’s central to everything. I think the beauty of Juthoor is that everyone can have a good time.

“They are all vendors that we would shop from. They’re all local; they’re all great quality. We’re very selective.

“It has to be local — we don’t accept vendors who import products and sell them.”

Most of the farmers come from neighboring places within the Eastern Province.

One such example is farmer Emad Ali Alshawaf who traveled to Juthoor from nearby Jubail to offer his goods, including cucumbers and fresh mint.

Alshawaf told Arab News that he found out about Juthoor from another vendor and decided to give it a chance.

He said: “Last year we decided to participate at our very first farmers’ market and we chose Juthoor. We were very successful and we hope to be this year too.” 

He has one small criticism, however, and added: “The price of the booth is quite high for us. These are organic produce items with no preservatives, so they have a two-day limit. If I don’t sell the tomatoes within that timeframe, for example, we are forced to throw them away.”

Back in Jubail, where his farm is about an hour’s drive away, he can guarantee sale of the goods as he is more familiar with the community and knows how to navigate it. But since these fresh vegetables and other goods are reserved for the booth at Juthoor, he just hopes people will buy them before they spoil.

Among the returning vendors is Shikhah Albuainain, of Crafting, Gifts & Other Stories. She told Arab News: “My first participation ever in any event was at Juthoor in 2019. It was our first time, so it was special — we all learned together.”

Initially a crocheter, she returned to Juthoor in 2020 and added to her products. She now sells iPad bags, scrunchies and toiletry bags, all sewn by hand at her workshop in the Eastern Province.

Albuainain said: “Juthoor really helped me pivot toward items that people can use and buy in person, not just from my online store.”

Al-Dulaijan, one of the co-founders of Juthoor, told Arab News that the Juthoor family was there to help support each other.

She said: “The (participating vendors) all exist with or without us; they exist the entire year without Juthoor. Juthoor is just here as a platform for them to meet people, to get them to try their things, and see it in real life.”

The next step? Growing roots, and blossoming, in Riyadh.

Al-Suqair, its third co-founder, moved to Riyadh at the beginning of 2025 and is setting up roots there.

Al-Dulaijan said: “What happened with our partner (Al-Suqair) moving to Riyadh, it kind of gave us a push, because now we have someone centered there.

“No one knows us there. The difference between here (Dhahran) and there (Riyadh), is the market is saturated with events. We’re not the type of event that happens in Riyadh. We are like earthy, maybe, cozy and simple. And Riyadh? They’re used to humongous events, big budgets, big everything.”

The co-founders are excited about the new challenge and the new rewards — and bringing a taste of Eastern Province to the capital. 

You can catch them between Feb. 5-14, conveniently timed for a week before Ramadan.

Al-Dulaijan said: “We’re happy that the location is … The Cultural House (in Riyadh). Their identity is similar to ours.”

Tickets for the Dhahran event can be purchased online or at the door and cost SR30 ($8) for adults and SR20 (aged 7-13). Children under 6 are admitted free.

Doors are open until 11 p.m., with a 4 p.m. start on Sunday to Thursday or 2 p.m. (Friday and Saturday).