Kafalah SME Guarantees Top SAR 100 Billion

Saudi Arabia's SME loan-guarantee program, Kafalah, has surpassed SAR 100 billion in guaranteed financing as of September 2024, a milestone that underscores the continued expansion of small and medium-sized enterprise funding across the kingdom.

Kafalah works as a loan-guarantee mechanism rather than a direct lender or grant provider. It backs financing extended to eligible businesses through partner banks and financing entities, helping companies that may lack sufficient collateral gain access to credit they might otherwise struggle to secure.

What it means for businesses

By sharing risk with lenders, the program aims to widen access to capital for entrepreneurs and smaller companies — a segment seen as central to job creation and economic diversification in the kingdom. The program has set a public target of reaching between SAR 20 billion and SAR 22 billion in guarantee issuances across 2025 and 2026.

Because Kafalah operates through partner banks and financing entities, business owners seeking a guarantee apply via participating lenders rather than through a public consumer platform. The core structure of the program remains unchanged based on currently available information.

Publicly available details do not specify exact fees, prices, or validity periods for the guarantee in 2026. Business owners interested in the program should confirm the latest terms directly with participating banks and financing providers before applying.

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