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Saudi Financing Initiatives Seek to Earmark 20% of Lending Program to SMEs

Saudi Arabia’s development funds announced a set of initiatives to alleviate the repercussions of the Corona pandemic on SMEs. (Asharq Al-Awsat)
Saudi Arabia’s development funds announced a set of initiatives to alleviate the repercussions of the Corona pandemic on SMEs. (Asharq Al-Awsat)
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Saudi Financing Initiatives Seek to Earmark 20% of Lending Program to SMEs

Saudi Arabia’s development funds announced a set of initiatives to alleviate the repercussions of the Corona pandemic on SMEs. (Asharq Al-Awsat)
Saudi Arabia’s development funds announced a set of initiatives to alleviate the repercussions of the Corona pandemic on SMEs. (Asharq Al-Awsat)

Saudi Arabia’s development funds have announced measures to support government initiatives to alleviate the economic impact of the coronavirus pandemic, with the SMEs and the medical sector receiving a great share.

The Kingdom launched initiatives to support small and emerging projects, with the aim to earmark 20% of the lending portfolio to this segment, at a value amounting to 118 billion riyals ($31.5 billion).

The National Development Fund recently announced programs worth 22 billion riyals ($5.8 billion) in support of development priorities and economic needs within the urgent initiatives announced by the government to face the consequences of the novel coronavirus.

Saeed Al Zahrani, Assistant Director General of the Social Development Bank (SDB), said the Kingdom was planning to support small and emerging projects within the framework of a portfolio of 118 billion riyals. His remarks came during a virtual session held in Riyadh on Thursday, to reveal financing initiatives in support of the SMEs.

For his part, Ahmed Al-Gwaiz, Vice President of the Saudi Industrial Development Fund (SDIF), said that the priority in programs and initiatives focuses on essential activities, especially the medical sector and health supplies.

He emphasized that the SDIF vision was to maintain the sustainability of those projects after the end of the pandemic.

Gwaiz underlined that the Fund was seeking to finance 40 projects in the medical sector. Requests for three projects have been implemented to date, at a value of 150 million riyals, while other requests are being considered, he said.

Bader Almalik, Vice President of the Saudi Agricultural Development Fund, announced the postponement of installments for 4,000 beneficiaries until September, in order to support their work during the current period.

He also revealed initiatives to stimulate SMEs through operating and indirect loans amounting to 300 million riyals.

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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a press release issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the release, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the release, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The release disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.