Signing of 20 Cooperation and Investment Agreements Worth More Than One Billion Riyals

Riyadh, Kingdom of Saudi Arabia, 11 June 2023

The SME Bank system, affiliated with the National Development Fund, signed 20 agreements for joint cooperation and investment with several financial technology entities, local and international investment funds, and e-commerce platforms, with a total value exceeding one billion riyals, including: The SME Bank signed 10 agreements and memoranda of understanding worth SAR 500 million, while the Saudi Venture Capital Company (SVC) signed 3 investment agreements worth SAR 232 million. Additionally, "Kafalah" Program signed 7 memoranda of understanding valued at SAR 300 million, with a financial leverage of up to 5 times.

The signing ceremony was attended by His Excellency Mr. Yousef bin Abdullah Al-Benyan, Chairman of the Board of Directors of SME Bank; Her Excellency Dr. Lee Young, Minister of SMEs and Startups of the Republic of Korea; Mr. Abdulrahman bin Mohammed bin Mansour, Acting CEO of SME Bank; His Excellency Dr. Nabil bin Abdulqader Koshak, CEO and Board Member of"SVC"; Mr. Hammam bin Abdulaziz Hashem, CEO and Board Member of the Small and Medium Enterprises Loan Guarantee Program "Kafalah"; along with a number of officials from both the public and private sectors.

In turn, the Acting CEO of SME Bank, Mr. Abdulrahman bin Mohammed bin Mansour, explained that the signing of cooperation agreements and memoranda of understanding aims to diversify options and introduce new financing solutions for the SME sector, as well as to increase its contribution to the GDP to 35% by 2030, in line with the objectives of the Vision 2030. He emphasized that these efforts contribute to the sector’s development and sustained growth, building on the unwavering support provided by the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince — may Allah protect them-.

Bin Mansour also pointed out that the activation of the agency financing program (crowdfunding) comes as an extension of the financing and investment options provided by SME Bank to ensure the availability of necessary funding for the growth of enterprises. This is achieved through the combined efforts of "Kafalah" Program and "SVC", to ensure the sustainability and growth of enterprises through investment financing funds. He clarified that the allocation of SAR 500 million is an extension of the previously allocated SAR 10.5 billion to support SMEs, bringing the number of financing entities to 50, all supporting the growth of the Financing Portal and the Indirect Lending Initiative. 

The Acting CEO also highlighted the achievements of SME bank during the first quarter of 2023, including financing more than 300 SMEs with a total value exceeding SAR 1.1 billion. He also noted the accomplishments of "SVC", whose total investments reached SAR 1.75 billion by the end of the first quarter. SVC has invested in 32 funds, and the number of startups and SMEs supported through investment programs of SVC reached 674 companies. Additionally, the value of financing under Kafalah Program grew by 17% during the first quarter, bringing the total value of financing provided since the program’s inception to more than SAR 80 billion.

The agreements and memoranda signed by SME bank included: Lendo Company, represented by its CEO Osama Al-Raei; Manafa Company, represented by its CEO Abdulaziz Al-Adwani; Raqamya Company, represented by its CEO Ammar Bakhit; Forus Company, represented by its CEO Nusseibeh Al-Rajhi; Tameed Platform, represented by its CEO Mohammed Al-Owaimer; Sukuk Capital Company, represented by its CEO Abdulaziz Al-Sayari; Lamah Company, represented by its CEO Sumit Kotel; Jahez International Company for Information Systems Technology, represented by Executive Vice President Meshal Al-Meshari; Salla Platform, represented by Suhail Jaber, Vice President of Revenue; and Zid Platform, represented by Growth Manager and CEO Mazen Al-Darrab.

The investment agreements of "SVC" included: A joint investment agreement with the Korean Venture Capital Company to stimulate joint investment in Saudi and Korean startups. A second investment agreement with the Shorooq Partners Fund to encourage investment in Saudi startups. A third investment agreement with Partners for Growthto double the investment in the venture debt fund managed by Partners for Growth.

"Kafalah" also signed 7 memorandums of understanding aimed at increasing financing opportunities for enterprises by activating strategic partnerships with financing companies in the financial technology sector. These agreements also seek to provide guarantees for micro and small enterprises to obtain guarantees electronically through 3 simplified steps. The signings included: Tameed Platform, represented by CEO Mohammed Al-Owaimer; "Lamah" platform, represented by CEO Sumit Kotel; "Lendo" platform, represented by CEO Osama Al-Raei; "Hala" platform, represented by CEO Essam Al-Nahdi; the "Raqamyah" platform, represented by its founder Ammar Bakheet; and the "Forus" platform, represented by CEO Ms. Nusseibeh Al-Rajhi. Additionally, a memorandum of understanding was signed with "Mnasati" (mulkiat) platform, represented by its founder: Musa Al-Ruwaili. This agreement aims to provide investment opportunities for acquiring partial ownership stakes in existing facilities, with financing guaranteed by Kafalah which gives stability to the SME sector and facilitates the transfer of ownership shares in a transparent and seamless manner.