Saudi Kafalah program drives 98% financing surge for entertainment SMEs

Kafalah  is part of Saudi Vision 2030’s strategy to foster economic growth and develop promising sectors. Shutterstock
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Updated 26 August 2025
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Saudi Kafalah program drives 98% financing surge for entertainment SMEs

JEDDAH: Entertainment focused small and medium enterprises in Saudi Arabia experienced a 98 percent year-on-year increase in financing during the second quarter of 2025. 

The Small and Medium Enterprises Financing Guarantee Program, also known as Kafalah, supported 32 establishments and issued guarantees exceeding SR79 million ($21 million), the Saudi Press Agency reported. 

The number of beneficiary establishments rose 78 percent compared with the same period in 2024. By the end of the quarter, 94 enterprises had benefited from the program’s entertainment sector product, receiving total financing of more than SR304 million and guarantees totaling SR225 million.

Kafalah works in partnership with the General Entertainment Authority and financial institutions to provide guarantees that reduce financing risks and broaden access to capital. The initiative is part of Saudi Vision 2030’s strategy to foster economic growth and develop promising sectors.  

The SPA report noted that this growth in the entertainment sector highlights “the effectiveness of the product in supporting the sector’s growth and facilitating establishments' access to appropriate financing solutions.” 

It added: “The Kafalah program continues its commitment to supporting vital sectors by providing financial guarantees that contribute to reducing financial risks and expanding the scope of financing through effective partnerships with financing entities, supported by an integrated technical and knowledge system.” 

Kafalah’s Entertainment Product provides financial guarantees to SMEs across various entertainment sectors, including supporting industries, offering coverage of up to 90 percent of the funding value, according to its website.  

Maximum guarantee limits are SR2.5 million for micro enterprises, SR5 million for small enterprises, and SR15 million for medium enterprises. Enterprises can apply directly through cooperating financial institutions or via the SME Bank’s finance portal, with the program reviewing requests and issuing guarantees to the financier upon approval. 

Since its inception in 2020, Kafalah has issued more than 64,000 guarantees valued at SR72.5 billion, supporting over 23,000 enterprises and creating nearly 1 million jobs, according to a release issued in September 2024.  

Twenty-seven enterprises have transitioned from medium-sized firms to the parallel market, while 8 percent of micro-enterprises have grown into small and medium-sized businesses. 

The program also reduced the average processing time for guarantees from 48 working days to just 36 hours using AI-driven systems. Studies conducted with King Fahd University of Petroleum and Minerals found that Kafalah-supported enterprises experienced a 17.3 percent increase in employment compared with those relying on traditional financing. 

Over the past five years, the Kafalah program has contributed nearly SR27 billion to Saudi Arabia’s gross domestic product, highlighting its role in expanding the Kingdom’s SME ecosystem. 


Airports in GCC are turning stopovers into tourism growth

Updated 14 February 2026
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Airports in GCC are turning stopovers into tourism growth

  • Governments and airport operators are turning aviation as a central pillar of tourism and economic strategy

CAIRO: Once defined by fleeting layovers and duty-free corridors, airports across the Gulf Cooperation Council are increasingly gateways to short-stay tourism, driving non-oil growth, hospitality revenues and job creation. 

Across the region, governments, airlines and airport operators are treating aviation not merely as a transport sector but as a central pillar of tourism and economic strategy. Through streamlined visa regimes, airline-led stopover programs and sustained investment in airport infrastructure and technology, GCC countries are turning transit passengers into visitors. 

“Across the GCC, destinations have shifted from functioning primarily as global transit hubs to positioning themselves as places travelers actively choose to visit, even for short stays during onward journeys,” Nicholas Nahas, partner at Arthur D. Little, told Arab News. 

Airports in the Middle East are investing heavily in biometric processing systems, e-gates and digital border controls designed to shorten waiting times and improve passenger flow. These upgrades, backed by coordinated public-private initiatives, are narrowing the gap between arrival and exploration, making short stays viable even for passengers transiting for less than 48 hours. 

Unified GCC visa 

Two years after its initial proposal, the long-discussed unified GCC tourist visa is moving through final coordination stages, a development expected to further accelerate tourism spending linked to stopovers. 

Looking ahead, the visa could allow the region to function as a single tourism corridor. Robert Coulson, executive adviser for real estate at Accenture, said the next phase is about regional continuity. “The next leap for the GCC is making the region feel like one seamless journey while differentiating each stop with a distinct identity,” he told Arab News. 

First proposed in 2023 and approved in principle in 2024, the visa is designed to allow travel across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE under a single permit. Analysts say Saudi Arabia is positioned to be among the biggest beneficiaries, given its scale, expanding destination portfolio and growing aviation capacity. 

The unified visa is expected to complement existing stopover initiatives by allowing travelers to combine short visits to Saudi Arabia with trips to Dubai or Doha, effectively turning the Gulf into a single multi-country itinerary rather than a series of isolated transit points. 

Saudi aviation surge 

Saudi Arabia’s aviation-driven tourism growth has accelerated rapidly. The Kingdom welcomed an estimated 122 million visitors in 2025, moving closer to its Vision 2030 target of attracting 150 million tourists annually. 

“GCC travel hubs have stopped selling connections and started selling experiences,” Coulson said. “They’ve cracked the stopover-to-stayover model, turning a layover into a mini-holiday rather than dead time.” 

In January, Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, said international destinations served from Saudi Arabia increased to 176 in 2025, while the Kingdom remained home to some of the world’s busiest air routes. 

He credited this performance to the “unlimited support” of the Kingdom’s leadership, identifying aviation as a key enabler of Vision 2030 and broader economic diversification. 

Saudi Arabia’s newest airline, Riyadh Air, is expected to contribute more than $20 billion to non-oil gross domestic product and create over 200,000 direct and indirect jobs, underscoring aviation’s expanding economic footprint. 

A key pillar of Saudi Arabia’s strategy has been the introduction of a digital stopover visa in 2023, allowing transit passengers to enter the Kingdom for up to 96 hours. The initiative enables short visits for Umrah, trips to Madinah or exploration of the country’s cultural and historical sites.  The policy reflects a broader regional effort to turn time spent between flights into economic activity beyond the airport terminal, particularly in hospitality, transport and cultural tourism. 

Short-stay shift 

This evolution has been driven by global connectivity, simplified visa access and the ability to deliver high-quality experiences within a 24-to-72-hour window. The UAE, particularly Dubai, was the earliest and most established example of this transition, converting a growing share of its transit traffic into visitors through airline-led stopover packages, flexible visa categories and dense, short-stay-friendly attractions. 

Dubai International Airport handles more than 85 million passengers annually. Curated stopover products combining hotel stays with cultural and entertainment experiences have helped transform transit traffic into leisure demand. Direct metro access and streamlined entry processes have further reduced friction. As a result, Dubai welcomed around 19 million international overnight visitors in 2025. 

Other GCC destinations have since adopted similar models. Abu Dhabi expanded stopover offerings through its national carrier, promoting entertainment and cultural districts as compelling short-stay experiences. Qatar embedded stopover tourism into its national tourism strategy, converting transfer traffic at Hamad International Airport into city stays. Saudi Arabia expanded its tourism offering through its 96-hour digital visa linked to onward flights. 

A smooth transit experience is often the deciding factor in whether passengers remain airside or choose to explore. Fast entry processes, intuitive airport design and reliable airport-to-city connectivity can turn even a six- to eight-hour layover into usable time rather than idle waiting. 

Under Vision 2030, Saudi Arabia has invested heavily in airport expansion, digital border processes and urban mobility projects designed to shorten the distance between arrival and experience. Airline stopover platforms, transport apps and airport-based destination messaging increasingly reduce uncertainty and enable spontaneous exploration. 

Beyond transit traffic, Nahas said tourism growth across the GCC has been driven by integrated destination ecosystems. Successful destinations are designed end-to-end — from trip planning and arrival through accommodation, mobility, experiences and departure — requiring coordination across tourism authorities, airlines, airports, transport providers and experience operators. 

Designing destinations 

For developers shaping the region’s next phase of tourism growth, the focus has shifted toward creating destinations that capture travelers from the moment they arrive. 

Sultan Moraished, group head of technology and corporate excellence at Red Sea Global, said next-generation destinations are being designed to resonate with global travelers beyond a flight connection. 

“As we design and build next-generation destinations, our focus is always on creating experiences that resonate with global travelers from the moment they arrive to when they choose to explore beyond a flight connection,” he told Arab News. 

Moraished said offering experiences travelers cannot find elsewhere, from cultural immersion to nature-based activities, creates compelling reasons to extend visits beyond simple transit. He added that collaboration across aviation, hospitality and destination authorities ensures that every part of the journey is aligned with a shared vision for tourism growth. 

Looking ahead, Moraished said the intersection of innovation and hospitality will continue to open new pathways, from smart digital experiences to regenerative tourism practices that appeal to increasingly conscious travelers and encourage repeat visitation. 

Experience economy 

Airports have shifted from being standalone infrastructure assets to functioning as world-class distribution engines for cities and destinations. Investments in gateway airports have made them part of the destination brand promise. 

Tourism operates as a continuous conversion funnel, Coulson said. Every step removed between the flight gate and the city increases the likelihood that travelers will leave the terminal and spend money locally. Fast connections, predictable baggage handling and clear wayfinding reduce perceived risk, while simplified transit visas make spontaneity possible. 

A unified GCC tourist visa could unlock longer stays and multi-country itineraries, supported by investment in walkable districts, waterfronts and climate-smart design. 

Taken together, the transformation of transit hubs into tourism powerhouses reflects a broader shift in how the Gulf approaches aviation-led growth. Airports are no longer just points of passage but economic gateways where short stopovers translate into tourism spending, jobs and long-term diversification.