Hundreds of Saudi SMEs benefit from Monshaat’s indirect lending initiative

A total of 824 enterprises have benefitted from the indirect lending initiative aimed at driving the private sector contribution with SAR 800 million in disbursements, according to the General Authority for Small & Medium Enterprises (Monshaat).

Financing firms, licensed by the Saudi Arabian Monetary Authority (SAMA), helped carrying out the initiative.

In October, Monshaat launched an indirect lending initiative at SAR 1.6 billion in capital, in partnership with the Local Content and Private Sector Development Unit (Namaa).

Read: SMEs authority Monshaat launches lending initiative at SAR 1.6 bln in capital

The initiative, which targets small and mediums enterprises (SMEs) as well as business entrepreneurs, helps providing licensed finance companies with low-cost loans. It also introduces new diversified financing instruments to boost investments as well as new developments.

The first phase of the initiative initially comprised eight licensed financers, namely, Gulf Finance Corporation, AJIL Financial Services Company, Al Raedah Finance, Al Amthal Financing, Maalem Financing Company, National Finance, Tamweel Aloula and Morabaha.