Saudi Arabia: 6.2% of Funding for SMEs Comes from Banks, Firms

AFP file photo of people making purchases at a point of sale in Riyadh.
AFP file photo of people making purchases at a point of sale in Riyadh.
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Saudi Arabia: 6.2% of Funding for SMEs Comes from Banks, Firms

AFP file photo of people making purchases at a point of sale in Riyadh.
AFP file photo of people making purchases at a point of sale in Riyadh.

The Saudi Arabian Monetary Authority’s monthly bulletin has shown that the funding of micro, small and medium-sized enterprises (SMEs) by the banking sector and funding firms has remained stable at a rate of 6.2 percent of the total facilities offered.

This covers the second quarter of 2019, which witnessed the same rate in the first quarter.

But the new data shows that this year’s funding rates are higher than in 2018, in a sign that the public and private sectors are willing to enhance the contribution of SMEs to the local economy in line with Saudi Vision 2030.

Among others, the Vision seeks to boost the contribution of SMEs to the GDP.

SAMA’s bulletin also revealed a 19 percent increase in sales for July at points of sale across Saudi Arabia, reaching around SAR22.77 billion (USD6 billion) compared to SAR19.18 billion (USD5.11 billion) during the same period of 2018.

These sales occurred through 129.7 million transactions and around 404,200 devices, added the bulletin.

During July, ATM withdrawals dropped slightly by 0.4 percent and reached around SAR63.15 billion (USD16.84 billion) compared to the withdrawals of 2018 that stood at SAR63.42 billion (USD16.91 billion).

This coincided with the value of assets of public and private funds in Saudi Arabia making unprecedented gains in the second quarter of 2019, reaching SAR323 billion (USD86.1 billion) compared to SAR310 billion (USD82.6 billion) during the first quarter of the same year.

According to SAMA, there was a 4.1 percent increase in the values of public and private funds in Q2 of 2019 while that of private investment funds grew by 3.5 percent, and public investment funds by 5.3 percent.



FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.