Prime Highlights
- Kafalah issued 5,447 guarantees in Q3 2025, raising SME funding by 8% year-on-year to SR14 billion, reinforcing its role in economic development.
- The program continues to support Vision 2030 goalsby helping small and medium businesses grow and diversify the Kingdom’s economy.
Key Facts
- The total value of guarantees reached SR10.6 billion, marking a 4% increasefrom the same period in 2024 and benefiting 4,384 SMEs.
- Since 2006, Kafalah has provided over 71,400 guarantees worth SR89.5 billion, supporting 26,500 SMEswith total financing exceeding 3 billion.
Background
Saudi Arabia’s Small and Medium Enterprises Financing Guarantee Program (Kafalah) has strengthened support for SMEs by issuing 5,447 guarantees in the third quarter, raising small-business funding by 8 percent year on year to SR14 billion ($3.73 billion). The total value of guarantees reached SR10.6 billion, showing a 4% increase compared to the same period in 2024, according to the Saudi Press Agency (SPA).
The total value of guarantees climbed to SR10.6 billion, a 4 percent increase from the same period in 2024. During this period, 4,384 small and medium enterprises benefited from Kafalah’s financial support.
Homam Hashem, CEO of Kafalah, said the growth in financing reflects the key role of SMEs in driving national economic development. He added that the program supports the objectives of Vision 2030, which aims to diversify income sources and empower the business sector.
Hashem described Kafalah as a pioneering partnership between the public and private sectors that improves access to finance and helps businesses overcome challenges.
Since it was founded in 2006, Kafalah has approved over 71,400 guarantees worth SR89.5 billion and supported about 26,500 small and medium-sized enterprises (SMEs), with total financing of more than SR125.3 billion.
The entertainment sector has grown strongly under the program, with financing rising by 98% in the second quarter of 2025. Kafalah issued guarantees of over SR79 million to 32 companies, bringing total financing for the entertainment sector to SR304 million by mid-2025.
The program works with the SME Bank and the National Development Fund to support the growth and expansion of small and medium-sized businesses throughout Saudi Arabia. Over the last five years, Kafalah has added nearly SR27 billion to Saudi Arabia’s economy, showing its strong role in helping diversify the Kingdom’s sources of growth.
