Small and Medium Enterprises Bank – Saudi News

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Small and medium enterprises are an important pillar in building the economy, and they play their integral role in building projects, and contribute to the increase in production and the emergence of creativity and innovation in various fields, and therefore the success of this type of projects is linked to the level of their facing the challenges. Therefore, the Kingdom has taken care to develop, develop and support this type of projects due to the importance of its role in building development. As it mainly contributes to generating jobs, reducing unemployment rates, as well as Emiratisation, in addition to increasing the GDP, although obtaining support is among the challenges facing some of the owners of these projects; As they do not have sufficient capital, in addition to the fact that some traditional financing solutions require interest to a degree that may be cumbersome; This means moving towards alternatives and raising the level of competitiveness of solutions.To bridge the financing gap, increase financing and promote sector growth, and after the cabinet’s approval last week of “establishing a small and medium enterprises bank”, which plays a complementary role in addition to the existing business and initiatives that “Monshaat” has worked on during the past three years, the General Authority for Small and Medium Enterprises announced the launch of The bank, which comes as one of the development funds of the National Development Fund, thus activating this support for financing companies stimulates the growth of the private sector and creates innovative financing alternatives.

Raising the level of competitiveness of financing companies by supporting the bank, contributing to the availability of options that the beneficiary gets in terms of increasing financing, achieving financial stability for enterprises, and enhancing the competitive contributions made by financial institutions, as the establishment of the bank was based on several previous initiatives; Including the indirect lending initiative with a capital of 1.6 billion riyals to finance the lending support, in addition to the establishment of the Saudi Venture Investment Company with a capital of 2.8 billion riyals to develop bold and angelic investment and investment funds, as well as raising the budget for guaranteeing financing to reach 1.6 billion riyals, and this strengthens the contributions of institutions It contributes to increasing financing provided to small and medium-sized enterprises, and works to achieve financial stability in them.

Saudi writer

@Shehri_aha







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