Financing Saudi banks. Institutions that support entrepreneurs

By “Saudi Bank Financing” we mean the financing services and products provided by banks and financial institutions in the Kingdom; To remove obstacles for entrepreneurs, especially young people, and push their projects forward.

Rather, these funding efforts are in line with the objectives and ambitions of Vision 2030, which seeks to take the initiative through entrepreneurs, and has the largest share in supporting the national economy and its development, not to mention a radical transformation in the economic system. in the Kingdom, a transformation that means transition From dependence on oil to diversification of income sources, and all this does not happen without financing from Saudi banks.

Saudi bank financing

monitors «Entrepreneurs»A range of facilities offered by Saudi banks in terms of financing or in general, as follows:

  • Social Development Bank

The Bank is working to provide many financing options for emerging projects, and its efforts have contributed to providing many jobs for the people of regions and governorships, and have also contributed to the support of the local economy. Where 478 entrepreneurs benefited from the support and qualification.

Among the services provided by the Bank, which fall within the scope of the efforts to finance Saudi banks, in terms of financing small projects: its financing product called “Financing Startups”, which according to the Social Development Bank has about 26 628 beneficiaries ; It seeks to provide value-added funding for small and emerging projects.

The financing of this product amounts to 300 000 riyals, and the partners include the National Entrepreneurship Institute, Jubail Industrial Development Center, Namaa Al-Monawara Corporation, Jazan Chamber and Hail Chamber, in addition to the Makkah Chamber and Yanbu Chamber.

The Social Development Bank emphasized that the applicant for financing start-up businesses must meet a number of requirements, namely: national identity, national address, IBAN account number and mobile phone registered in “Absher”, and note that there are a number activities are what are not funded.

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  • Saudi Export Import Bank

It is not possible to talk about the financing of Saudi banks without referring to the Saudi export and import clause, the organization of which was approved by Cabinet Decision no. (423) dated 06/24/1441 AH. Aiming to promote the development and diversification of Saudi exports and increase their ability to compete in global markets in various sectors.

This is done by providing export financing services, guarantees and export credit insurance with competitive advantages; To improve confidence in Saudi exports, their entry into new markets and reduce the risks of default by their importers.

The Bank intends to provide credit facilities for the importation of raw materials; With the aim of creating added value for it and executing it again.

It all comes with the support and empowerment of the Keeper of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and his Crown Prince, His Royal Highness Prince Muhammad bin Salman bin Abdulaziz – may God preserve them – in light of the goals and pillars of the Kingdom’s Vision 2030 which deals with increasing the ratio of non-oil exports to GDP.

Also read: Project Funding Efforts in the Kingdom … Push Entrepreneurs Ahead

Riyad Bank offers, but is not limited to, many financing loans, and assists in determining the level and effectiveness of the project; By specialized trainers; To provide the client with professional advice, business tools software and accounting tools.

The bank also offers a full range of Islamic and conventional banking products and services, and is keen to use its strong capital base and long experience to play a leading role in the field of finance. This is an example of efforts to finance Saudi banks.

Bank Al-Jazira offers a number of Islamic products in the field of financing small and medium enterprises, including: Islamic Murabaha, and financing of tawarruq used to finance working capital.

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  • National Commercial Bank

Among what should be mentioned in the efforts to finance Saudi banks, the National Commercial Bank; Which, like other banks, offers several facilities to enable business owners to expand their activities, train and develop them to develop their business management skills, and provide some electronic banking solutions provided to automate the day-to-day operations of these businesses.

So the case is not just limited to financing, but the efforts to finance Saudi banks go beyond that. It works to develop and develop the skills of entrepreneurs, and push them forward.

  • Saudi Central Bank

At the beginning of the second quarter of 2020, the Saudi Central Bank, known as the Saudi Arabian Monetary Agency “SAMA”, in collaboration with the “Kafala” program, launched the secure financing program; By guaranteeing 95% of the value of the funding granted in accordance with the mechanisms adopted within the Kafalah program, and what is remarkable about this program, is that it exempts enterprises from any administrative fees and from the provision of any guarantees in kind; Since the “Sama” Foundation bears the warranty fees in favor of the sponsorship program instead of the client.

The secure financing program aims to overcome the challenges of financing micro, small and medium enterprises, in addition to providing more additional support and improving the creditworthiness of these enterprises; This mitigates the impact of the decline in cash flow, making it easier for them to serve their customers and pay the salaries and claims of their employees.

Also read:

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The cost of small projects .. its estimate and its types

Financing the idea of ​​a small project .. the available options

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