Kafalah SME Financing Guarantee Program

Under Monsha’at, Kafalah is the SME Financing Guarantee Program. It sits beside Saudi Arabia’s commercial lenders and reduces collateral pressure by guaranteeing part of the debt rather than lending directly, which makes it useful for firms that can service financing but cannot clear ordinary bank-security requirements. The guarantee can cover up to 90% of the financing value, with ceilings of SAR 2.5 million for micro-enterprises, SAR 5 million for small firms, and SAR 15 million for medium firms. Companies apply through participating financial institutions or the SME Bank’s finance portal, and approvals flow back to the lender once the guarantee is issued. Since 2020, the program has issued more than 64,000 guarantees worth SAR 72.5 billion, supported more than 23,000 enterprises, and cut processing time to 36 hours. That combination makes Kafalah most useful for growth firms that need working capital or expansion debt but do not yet have enough collateral or credit history to borrow on standard terms.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.