Riyadh –  The number of beneficiaries from the Kafalah Program for small and medium enterprises (SMEs) loan guarantee, grew by more than 197% on an annual basis during the COVID-19 pandemic period, Saudi Press Agency (SPA) recently reported.

Initiated in 2006 with 23 enterprises, the programme guaranteed 2,500 entities in 2019, said the programme’s general manager, Homam Hashem.

Year-to-date (YTD), the value of guarantees issued surpassed SAR 3 billion, financings topped SAR 4.3 billion, an increase of more than 190% year-on-year (YoY). Moreover, the average guarantee period reached 22 months with a coverage ratio of 72%.

Riyadh was the top Kafalah beneficiary with 111 enterprises, followed by the Eastern Province and Mecca.

In terms of sectors, commercial activity headed the winners with 1,300 enterprises over the first half (H1) of the year, followed by the construction and building activity, and the industry sector.

Source: Mubasher

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