Kafalah defaults at 1.5% of total guarantees: Official

Rafiq Marwan, Director of Business Development and Studies at the Small and Medium Enterprises Loan Guarantee Program (Kafalah), said the program's defaults reached SAR 1.2 billion, representing less than 1.5% of the SAR 90 billion in total financing guarantees.

According to Al-Eqtisadiah newspaper, Marwan explained that the program aims to increase the value of financing guarantees over the next two years to the target level of SAR 200 billion, after having already provided guarantees for loans totaling SAR 127 billion.

According to Argaam data, Kafalah seeks to support small and medium enterprises (SMEs) in obtaining the necessary financing to develop and expand their activities. It also aims to encourage financing institutions to engage with the SME sector, and attract new SME owners — contributing to the overall growth and development of this vital sector.