Saudi Arabia’s SME loans account for 10% of financing by local banks

The loans provided to Saudi Arabia’s small and medium enterprises only account for 10 percent, or about SAR 147.37 billion of financing provided by local banks, said Sam Fattouh, secretary general of Union of Arab Banks.

Because SMEs have proven to be high-risk ventures, the kingdom should focus more on mega projects, Fattouh was quoted as saying in Mecca newspaper.

The state should encourage banks to finance SMEs by providing incentives, he added.

Local banks should facilitate the financing process, even in the absence of legislative regulatory framework in order to stress the importance of supporting these types of small ventures.