RIYADH: The Federation of Saudi Chambers has launched an initiative to back small and medium enterprises in the Kingdom by granting them access to services provided by government financing agencies.
The “Caravan Finance” initiative – which was launched in collaboration with the Chambers of Commerce – falls in line with the Federation’s role in supporting the SME sector by elevating financing opportunities and enabling enterprises to benefit from financial support packages stemming from government agencies, funds, and commercial banks.
The Social Development Bank, the Agricultural Development Fund and the Saudi Industrial Development Fund are set to participate in the initiative.
Meetings have been organized in chambers of commerce throughout the Kingdom to shed light on the financing programs available, and how SMEs can adequately benefit from them.
In October, oil giant Saudi Aramco also launched an initiative to support the Kingdom’s small and medium enterprises sector with funding of over SR3 billion ($798 million).
The Taleed Program tackles several common gaps facing SMEs — especially funding. The program will collaborate with several major entities including Al Rajih Holding, Energy Capital and Lamar Holding, and others with the intention of raising over SR3 billion. This significant fund is subject to increase, Senior Vice President of technical services at Aramco Ahmad Al Sa’adi said in an exclusive interview with Arab News.
The SME sector is deemed vital to the Kingdom's moves towards economic diversification as it represents more than 99.7 percent of commercial establishments.
Under the Vision 2030 goals, the SME sector is aiming for a 35 percent contribution to the national gross domestic product by 2030.
In addition to this, SMEs are set to play a significant role in achieving Saudi Arabia’s objectives of lowering the unemployment rate from 11.6 percent to 7 percent, increasing women’s participation in the workforce from 22 percent to 30 percent and expanding SME contribution to 35 percent of the GDP by 2030.
