Kafalah: SAR 13.9B loan guarantees extended to SMEs in 2024

Logo of Small and Medium Enterprises Loan Guarantee Program (Kafalah)

Small and Medium Enterprises Loan Guarantee Program (Kafalah) issued loan guarantees worth SAR 13.9 billion in 2024, benefiting micro, small, and medium enterprises (MSMEs) to support SME lending, Saudi Press Agency (SPA) reported.

A total of 5,346 MSMEs benefited from over 7,000 guarantees, facilitating loans exceeding SAR 18 billion. This marks a 17% increase from the SAR 15.7 billion recorded in 2023.

Rising demand for guarantees reflects continued SME support initiatives, improved operational efficiency, and the development of innovative financial products.

Collaboration with government entities ensured these initiatives’ continuity, reinforcing Kafalah’s role in sector growth.

Kafalah’s data shows micro enterprises transitioning to small businesses grew by 8% year-on-year (YoY), while small enterprises expanding into medium-sized businesses rose by 4% YoY.

The program helped 35 SMEs list on the Nomu-Parallel Market and contributed to a 10% YoY increase in Saudi employment within supported enterprises.

Key regions saw strong growth in financing guarantees. Riyadh led with 2,210 businesses securing over SAR 8 billion, followed by the Eastern Province with 1,159 businesses at SAR 4 billion and Makkah Province with 1,091 businesses exceeding SAR 3.6 billion.