The Saudi SMEs Guarantee Program (Kafalah) has proudly reported a significant increase in funding for the first quarter of 2025. It boasted a 17% increase in guaranteed financing, reaching SAR 4.8 billion in Q1 2025. A total of 1,610 SMEs benefited from 1,900 guarantees, securing SAR 4.8 billion compared to SAR 4 billion in Q1 2025. Financing approvals surged by 19%, with commitments exceeding SAR 3.4 billion versus SAR 2.9 billion in the prior year
Hamam Hashim, CEO and Board Member of Kafalah, emphasized SMEs as vital drivers of economic growth and income diversification under Saudi Vision 2030. He praised the program’s public-private partnerships for empowering SMEs to overcome challenges and expand sustainably. Government and private-sector collaboration, he noted, remains critical to fostering a resilient entrepreneurial ecosystem.
Decades of Impact: Kafalah’s Legacy Since 2006
Since its 2006 launch, Kafalah has approved over 67,700 guarantees, benefiting more than 25,000 SMEs. Total funding surpassed SAR 115 billion, with guarantees valued at SAR 82 billion. The program continues to reduce lending risks through strategic partnerships, innovative tools, and knowledge-based frameworks.
Kafalah aligns with the National Development Fund’s SME Bank to expand financing access. By offering financial guarantees, the program enhances SMEs’ eligibility for loans while mitigating risks for lenders. This integrated approach supports Saudi Arabia’s goal to cultivate a thriving SME sector, fueling job creation and long-term economic stability.
