Small and medium-sized enterprises (SMEs) in Saudi Arabia will now benefit from the expertise of one of Asia's leading banks, thanks to a new agreement signed on Tuesday,

The SME Bank of the Kingdom of Saudi Arabia has signed an agreement with the Industrial Bank of Korea (IBK) on mutual cooperation and knowledge exchange when it comes to financing businesses in the sector.

IBK will also advise on business strategy, risk and credit management, as well as development of products and services.

In a virtual ceremony, His Excellency Mohammad Al-Tuwaijri, chairman of the SME Bank, and Mr. Yoon Jong-won, chairman and CEO of IBK, signed the agreement in Riyadh and Seoul, respectively.

H.E. Al-Tuwaijri said:  “This collaboration is a step forward on our path to enhance the entrepreneurship ecosystem in Saudi Arabia, which is witnessing significant transformation and reform as part of the Saudi Vision 2030.

He added “Saudi Arabia is determined to become one of the world’s most advanced countries in entrepreneurship space, aiming to develop the local ecosystem’s components in collaboration with our partners.

"This strategic partnership with IBK is a cornerstone for establishing the financing arm of SME ecosystem and boosting innovative SMEs financing solutions.”

IBK is owned primarily by the government of the Republic of Korea with the aim of financing SMEs.

It has total assets of $382 billion, and its net income exceeded $1 billion for the sixth consecutive year, a credit rating of Aa2 from Moody’s, AA- from S&P, and AA- from Fitch.

The agreement follows a Memorandum Of Understanding signed by Monsha’at and IBK during the Crown Prince’s visit to Korea in 2019.