The meeting was attended by officials from the Commerce and Industry Ministry, Human Resources Development Fund, Saudi Commi-ssion for Tourism and Antiquities, Council of Saudi Chambers, Bab Rizq and other organizations.

Ibrahim Al-Honaishel, general manager of the bank, urged the participants to work as one team making use of their expertise.

He referred to a royal decree that has entrusted SCSB with the task of coordinating efforts to support SMEs and hoped the forum would boost the development of SMEs and lifting the obstacles facing them.

Al-Honaishel emphasized the need to extend the necessary support to Saudi youth to open small and medium enterprises.

“We have to pave the way for the success of their projects,” he added.

By 2009 there were more than 218,400 SMEs in Saudi Arabia and about 93.1 percent of these firms are owned by individuals. SMEs are engaged mainly in trade (34.3 percent), construction (32.3 percent) and downstream industries (14.6 percent).

About 55.5 percent of SMEs have less than five employees while 42 percent of them have five to 59. The government has decided to provide all-out support to SMEs considering their important role in the economy, especially in creating jobs for Saudis.

The Saudi Arabian Monetary Agency launched a new system last year to assess the performance of SMEs in order for banks to finance them with confidence and without hesitation.

“This is an important step toward encouraging banks to finance these enterprises,” said former governor of SAMA Muhammad Al-Jasser while launching the system, one of the projects of the Saudi Credit Bureau (Samah). “The assessment system that was launched today removes one of the major obstacles facing the development of SMEs,” said Jasser, who is now the minister of economy and planning.