Member News: AlRaedah Finance to provide a unique first of a kind financing solution to SME’s in the Kingdom of Saudi Arabia
Member AlRaedah Finance and Geidea Solutions team up to provide POS financing across the Kingdom
Saudi Arabia
geo/saudi-arabia
Location
23.885942, 45.079162
GPFI Seminar - Digital Financial Inclusion for Youth, Women and SMEs - Riyad
It was my great pleasure to be asked to contribute to this seminar, which is kicking off the Saudi G20 presidency’s work on financial inclusion on 22 January 2020, in Ryad. The purpose of the seminar is to bring together experts, policymakers, scholars, businesses and more to share insights, as the presidency dives into producing high level calls to action for governments to help move along digital inclusion for these key groups.
Social Development Bank Joins 150 Other Financial Institutions to Promote SME Finance
Washington, D.C. April 9, 2019 – Social Development Bank (SDB) became the newest member of the SME Finance Forum, a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs.
AlRaedah Finance
AlRaedah Finance has become since its establishment in 2014 the principal financing institution for SMEs in the Kingdom of Saudi Arabia. It offers the most extensive coverage for Shariah compliant financing solutions within the Kingdom.
Banque Saudi Fransi Joins 150 Other Financial Institutions to Promote SME Finance
Washington, D.C. February 26, 2019 – Banque Saudi Fransi (BSF) became the newest member of the SME Finance Forum, a global membership network that brings together financial institutions, technology companies, and development finance institutions to share knowledge, spur innovation, and promote the growth of SMEs.
Social Development Bank
SDB is a development finance institution that provides financial and non-financial services to individuals, families and businesses in Saudi Arabia.
Banque Saudi Fransi
Saudi Joint Stock Company established in 1977. It is affiliated with Crédit Agricole Corporate and Investment Bank. Credit Agricole CIB is a fully-fledged member of the Crédit Agricole Group.
Kafalah SME Finance Guarantee Program
Kafalah finance guarantee program aims to foster, support and develop the SME sector to contribute positively to the social and economic development of Saudi Arabia.
Saudi banks pull welcome mat for SMEs seeking loans
“Banks are not lending to any startups without providing annual financial statements audited by licensed entities in Saudi Arabia,” said Al-Hazmi, co-founder of Riyadh-based Supply & Logistics Solutions that started operations last year providing storage and cargo services. “How would I be able to provide a bank with statements if I just started?”Lending under the nation’s SME Loan Guarantee Program, also known as Kafalah, plunged 76 per cent to SAR 572 million ($153 million) last year as banks tightened rules, according to data from the Saudi Industrial Development Fund. That compares with a 12 per cent increase for total bank credit last year to SAR 1.25 trillion, according to Saudi central bank data.“Banks in Saudi Arabia find it challenging servicing the SME market,” Yahya Alyahya, chief executive officer of Bahrain- based Gulf International Bank, which is majority owned by Public Investment Fund of Saudi Arabia, said in an e-mail on 24 February. “SMEs tend not to have reliable financial information, specifically audited financial accounts.”
Saudi Arabia sees potential in SME growth
Investment in small and medium enterprises in Saudi Arabia is expected to grow to more than USD 70 billion by the end of 2015, with the government and banks providing much-needed funding, according to industry data compiled by Zawya.
The sector's contribution to the kingdom's gross domestic product could rise to 37% by the end of 2015 from 35% a year earlier; in line with forecast growth in the number of licensed SMEs to some 2.5 million by end-2015 from 1.97 million as of January 2014.