Saudi- Kafala program helped SMEs with SR12bn

(MENAFN- Arab News) JEDDAH: The Kafala program has provided more than SR12 billion bank-funded loans to more than 6000 small and medium enterprises (SMEs) the head of the program Osama bin Abdulrahaman Al-Mubarak said.
Al-Mubarak who was addressing a business forum hosted by Makkah Chamber of Commerce and Industry (MCCI) in conjunction with the National Commercial Bank (NCB) and Kafala program of the Saudi Industrial Development Fund (SIDF) explored financing mechanisms regulations and types.
He stressed the importance of training knowledge and qualification for new and young businessmen.
The program which was launched in 2006 provided in its first year 51 guarantees from banks worth SR20 million despite obstacles it faced at the time.
Al-Mubarak said the program earlier discovered low levels of training and qualification of young entrepreneurs and owners of the SMEs which were considered the biggest obstacles to obtain support from the program.
He said that while applying for funds for any project the applicant needs to convince financing bodies that it is attractive as an idea and is financially viable.
Member of MCCI Saad Al-Qurashi said such a meeting enhances confidence of beneficiaries from the Kafala Program as it provides more jobs cuts unemployment and supports capitals in boosting the national economy in general and the Makkah region in particular.
In this context Director of the Kafala Program at NCB Fawwaz Khayyat said the NCB has achieved 20 percent growth of the program's capital and 53 percent of the market share.
He said the program provides funding up to SR2 million for a period extending up to five years in case the bank is convinced over the idea and feasibility of the project.