Bab Rizq Jameel Microfinance initiative to support Saudi MSMEs

In April, Saudi Arabia announced the allocation of SR50 billion ($13.3 billion) to support the private sector as part of its package of initiatives aimed at mitigating the economic repercussions from the coronavirus disease (COVID-19). The package, prepared by the Saudi Arabian Monetary Authority (SAMA), targets micro, small and medium-sized enterprises (MSMEs) and economic activities that have been most affected by the pandemic.

Bab Rizq Jameel Microfinance, part of Community Jameel, has announced a new initiative to support the measures taken by the state to fight the COVID-19 pandemic. The company has postponed customer payments for six months as of March 14, 2020 and extended the payment delay program for an additional three months until Dec. 14.

Abdulrahman Al-Fehaid, executive director of Bab Rizq Jameel Microfinance, said that this initiative comes in implementation of the directives of SAMA and in support of the efforts exerted to mitigate the impact of the pandemic on the citizens. He said Bab Rizq Jameel Microfinance is currently working to offer suitable financing programs and products for microentrepreneurs in a bid to counter the effects of COVID-19. Since the outbreak of the virus, the company has used all its media potentials in launching awareness and educational campaigns, with which a large segment of citizens and residents interacted.

Bab Rizq Jameel Microfinance is the first company licensed by the SAMA for microfinance activities in Saudi Arabia. During 2018-2019, it funded 11,143 productive families and 1,944 microenterprises.

The company stated that microfinance is one of the most vital sectors in Saudi Arabia. Therefore, it seeks to positively impact the social responsibility domain, especially with regards to entrepreneurship, which is considered one of the most important fields of the microfinance sector. “Bab Rizq Jameel Microfinance attempts to play a more vital role in promoting sustainability by launching quality community service initiatives,” a statement said.

Bab Rizq Jameel Microfinance provides Shariah-compliant financing through its branches across Saudi Arabia or via its online e-portal for SMEs and beneficiaries from its productive families and home-based work programs.

Customers can choose from a wide range of microfinance products, including productive family finance (exclusively for women), home business finance (to support home-based projects) and other products for small businesses and entrepreneurs. The company offers flexible and affordable payment plans with easy monthly installments.

Since 2003, Bab Rizq Jameel has supported tens of thousands of entrepreneurs, SMEs and productive families in the Kingdom through interest-free loans, helped more than 248,000 Saudi women into work through the productive household support program, and supported over 32,000 small businesses through various initiatives, such as the taxi ownership program. The total value of loans exceeded SR2 billion.