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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.
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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.

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Kuwait Seeks to Offer Flexible Incentives to Attract Foreign Investments

Kuwait City (Asharq Al-Awsat file photo)
Kuwait City (Asharq Al-Awsat file photo)
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Kuwait Seeks to Offer Flexible Incentives to Attract Foreign Investments

Kuwait City (Asharq Al-Awsat file photo)
Kuwait City (Asharq Al-Awsat file photo)

Mohammad Yaqoub, Assistant Director General for Business Development at Kuwait’s Direct Investment Promotion Authority (KDIPA), announced that Kuwait is actively working to boost investments in emerging sectors such as the management of government facilities, hospitals, and ports, including Mubarak Al-Kabeer Port.

He added that his country is collaborating with Saudi Arabia on joint projects, notably the development of a railway linking the two nations.

Speaking at the 28th Annual Global Investment Conference in Riyadh, Yaqoub highlighted the 650-kilometer railway project, which is expected to cut travel time between Saudi Arabia and Kuwait to under three hours. He clarified that this initiative is separate from the broader GCC railway network under development.

The official further emphasized Kuwait’s commitment to offering streamlined processes and incentives to attract foreign investment in critical sectors such as oil and gas, healthcare, education, and technology.

Since January 2015, the Gulf country has attracted cumulative foreign investments valued at approximately 1.7 billion Kuwaiti dinars ($5.8 billion). During the 2023–2024 fiscal year, KDIPA reported foreign investment inflows amounting to 206.9 million Kuwaiti dinars ($672 million).

Yaqoub stressed that KDIPA is focused on creating an investor-friendly environment by offering flexible incentives to attract international companies. He noted Saudi Arabia’s achievements in this area and highlighted his country’s efforts to provide comparable benefits to foreign investors.

He also expressed optimism about the potential for growth in foreign investments in Kuwait, emphasizing their role in advancing economic development in line with the United Nations’ Sustainable Development Goals (SDGs).

Yaqoub also underscored the strong synergy between the Kuwaiti and Saudi markets, which he said will help accelerate economic progress across the region.