Saudi Arabia invests in medium and small-sized business sector
The medium and small-sized business sector in Saudi Arabia is undoubtedly one of the most vital sectors of the country. For this reason, the kingdom has decided to offer financial assistance ranging between $2.6 and $4 billion to 300 businesses.
The majority of Saudi enterprises face a myriad of challenges in terms of financial assistance that restricts the amount of loans, which adversely effects this sector.
As such, the recent sector-evaluation project will make 300 billion SAR ($80 billion) available for businesses, in the next five years, to finance the sector. Such financial assistance will be provided through local banks to enterprises based on merit.
The project, named Taqyem, has been launched to boost support to small and medium enterprises. The Saudi Monetary Establishment (SIMA) has developed this project based on scientific criteria in order to evaluate and assess medium and small-sized businesses in Saudi Arabia.
Nabil El Mubarak, Chief Director of SIMA, said SIMA will evaluate medium and small businesses in terms of capital, volume of activity and number of employees in order to determine their eligibility to obtain corresponding financing.
“The project has been greatly welcomed by financial, governmental and private sectors that will help kick-start financing and therefore development of medium and small businesses in the kingdom,” said El Mubarak.
800 thousand businesses operate in the country, 90% of which (700.000) are medium or small-sized businesses. “Taqyem’’ will prompt these businesses by providing structural reforms and strategies to open new horizons for their development. (Source: www.yallafinance.com)