The Kafalah Programme officially announced a partnership with a diverse selection of Saudi-based entities, pledging up to $1.5 billion in financing guarantees for the Kingdom’s burgeoning community of startups and small and medium-sized enterprises (SMEs).

The announcement was made on the second day of Biban 2023, with the Kafalah Programme — the leading loan risk guarantee programme in the Kingdom and one of the largest loan risk guarantee programmes in the region — fully aligned with the goals of Vision 2030.

The programme’s $1.5 billion pledge was announced in conjunction with the signing of several agreements focused on developing the Saudi Arabian SME space.

This includes the Small and Medium Enterprises General Authority of the Kingdom of Saudi Arabia’s (Monsha’at) partnership with two of the world’s leading enablers of regional entrepreneurship.

In line with the Kingdom’s economic diversification, Monsha’at has signed a Memorandum of Understanding (MoU) with Oman’s SME Development Authority. The agreement will bring Monsh’aat and the SME Development Authority together to enhance the SME ecosystem in Saudi Arabia and Oman, promoting trade and entrepreneurship between both countries.

Monsha’at also signed an MoU with the Visa International Service Association (VISA). As part of the agreement, both parties will collaborate to enhance joint-cooperation and support VISA’s “She’s Next” initiative: a female empowerment programme established to equip female entrepreneurs with the tools to grow their businesses. The initiative support Saudi businesswomen in achieving their objectives and attaining sustainable success.

Worth over $1.5 billion, these partnerships join the wide-ranging agreements launched at Biban 2023. Bringing entrepreneurs, SME owners, investors, and policymakers from around the world together, the event — taking place from March 9 to March 13, 2023.

Saud Alsabhan, Vice Governor of Monsha’at for Entrepreneurship, said: “At a time when innovation has never been more important to overcoming persistent global challenges, safeguarding the future and creating a greater, more prosperous Saudi Arabia, Biban continues to provide some of the world’s leading business minds a fitting platform to network, collaborate and create.

He continued: “In just two days, we have brought changemaking entities and innovators together to launch landmark agreements that will enhance the Kingdom’s SME ecosystem, bolster the national economy, and secure our future.”

The Small and Medium Enterprises General Authority of the Kingdom of Saudi Arabia, Monsha’at, has signed a Memorandum of Understanding (MoU) with Huawei Tech Investment Saudi Arabia Limited.

Launched on the opening day of Biban 2023 — Saudi Arabia’s flagship startup and SME forum — the new partnership will see the two entities join forces to enhance the digital transformation of the Kingdom’s small and medium-sized enterprises (SMEs).

The MoU was one of more than 25 agreements launched alongside a range of investment initiatives, on the first day of Biban 2023.

The event — taking place from March 9 to March 13, 2023, at the Riyadh Front Exhibition & Conference centre — is expected to attract over 105,000 participants, including entrepreneurs, SME owners, investors, policymakers, and other stakeholders from the Kingdom and beyond.

As part of the agreements signed, separate to the MoU with Huawei, eight banks and financing entities pledged more than $2.93 billion to support the Kingdom’s SME ecosystem. As part of the agreement, Monsha’at and Huawei Tech Investment Saudi Arabia will work together to equip Saudi SMEs with the tools to grow and succeed in the e-commerce space.

The agreement will promote joint-cooperation and pioneer leading-edge solutions designed to empower SMEs reliant on communication technology.

In line with Vision 2030, the agreements will contribute to the diversification of the national economy, transforming the country into a world-class hub of commerce.

Sami Ibrahim Alhussaini, Governor of Monsha’at, said: “We are fully committed to bolstering the national economy and fulfilling the Kingdom’s potential. As part of this mission, we aim to create an affirming entrepreneurial environment conducive to investment and growth.”

“We have made significant strides on this journey over the years, as seen with the Kingdom’s recent leap from 41st place — in 2018 — to second place, in 2022, on the Global Entrepreneurship Monitor’s ‘State of Entrepreneurship index’.”

He added: “Biban 2023 represents a fantastic opportunity for us to build on this progress and take more steps towards realizing the goals of Vision 2030.”