MODON, Sukuk Capital sign deal to provide new financing solutions to SMEs

The new financing solutions are expected to elevate the capabilities of industrial plants to achieve targeted growth. (Shutterstock)
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Updated 24 May 2023
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MODON, Sukuk Capital sign deal to provide new financing solutions to SMEs

RIYADH: Entrepreneurs and owners of small and medium enterprises in Saudi Arabia are set to have enhanced access to financing solutions thanks to a new agreement.

The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, has signed a memorandum of understanding with Riyadh-based investment firm Sukuk Capital to boost funding opportunities in the sector.

The new financing solutions are expected to elevate the capabilities of industrial plants to achieve targeted growth.

The new MoU will also help create an attractive environment for investments in line with the Kingdom’s National Industrial Strategy, in addition to the Vision 2030 initiative, which seeks to diversify Saudi Arabia’s economy away from oil.

According to the CEO of MODON, Majid bin Rafid Al-Arqoubi, the partnership comes within the framework of the authority’s initiatives to enhance the financial sustainability and stability of the private sector.

It also comes within MODON’s objective to provide technical assistance programs for entrepreneurs and owners of SMEs in order to support the national economy, Al-Arqoubi highlighted.

Furthermore, the new solutions aim to stimulate the productivity of factories while creating economic opportunities and directing the energies of young people to innovative projects with high growth, the CEO explained.

Under the terms of the agreements, partners are projected to benefit from a variety of financial solutions with short-, medium- and long-term effects.

They are also set to gain from flexible payment schedules which contribute to increasing collection efficiency.

The SME sector is perceived as a vital economic engine, a key generator of new employment and the foundation of the global economy, Senior Vice President of technical services at Aramco Ahmad Al-Sa’adi said in an exclusive interview with Arab News in 2022.

Under the Vision 2030 goals, the SME sector is earmarked to contribute 35 percent to the Kingdom’s 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, and increasing women’s participation in the workforce from 22 percent to 30 percent.


Saudi industrial output rises 8.9% in December: GASTAT 

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Saudi industrial output rises 8.9% in December: GASTAT 

RIYADH: Saudi Arabia’s industrial production rose 8.9 percent in December from a year earlier, driven by stronger mining and manufacturing activity, signaling continued momentum in the Kingdom’s non-oil and energy sectors. 

The Industrial Production Index reached 113.6 in December, up from 104.3 a year earlier, the General Authority for Statistics said.  

The latest IPI figures underscore continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda. 

In its latest report, GASTAT stated: “Preliminary results indicate an increase of 8.9 percent in the IPOI in December 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”  

Mining and quarrying activity — the largest component of the index — increased 13.2 percent year on year after Saudi Arabia raised oil production to 10.1 million barrels per day from 8.9 million bpd a year earlier. Manufacturing expanded 3.2 percent, supported by a 13.4 percent rise in chemicals output and a 7.3 percent increase in food production. 

The sub-index of electricity, gas, steam and air-conditioning supply activity recorded an annual decrease of 2.5 percent. 

The sub-index of water supply, sewerage and waste management and remediation activities increased 9.4 percent. 

Compared to November, Saudi Arabia’s IPI recorded a marginal decline of 0.1 percent. 

On a monthly basis, the sub-index of mining and quarrying activity increased 0.3 percent. 

Manufacturing activities also rose 0.3 percent in December compared to the previous month, driven by a 2.8 percent increase in the manufacture of chemicals and chemical products. 

Compared to November, the manufacture of food products increased 9.6 percent in December. 

Overall, the index of oil activities advanced 10.1 percent year on year in December, while non-oil activities increased 5.8 percent. 

Compared to November, oil activities decreased 0.3 percent, while non-oil activities increased 0.4 percent. 

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities and waste management sectors.