Kafalah program for SMEs signs agreement with Saudi Finance Company

Kafalah, the Saudi SMEs loan guarantee program, has so far signed deals with five major financing institutions. (SPA)
Updated 29 March 2019

Kafalah program for SMEs signs agreement with Saudi Finance Company

  • The Saudi SMEs loan guarantee program has so far signed deals with five major financing institutions
  • The Kafalah program is also giving special attention to helping women in business

RIYADH: As part of its initiative to encourage financial institutions to invest in a greater number of small and medium enterprises (SMEs), the Kafalah program has signed an agreement with Saudi Finance Company.

In its efforts to help achieve the Vision 2030 objective for SMEs to contribute 35 percent of the nation’s gross domestic product, Kafalah, the Saudi SMEs loan guarantee program, has so far signed deals with five major financing institutions, in addition to all Saudi banks and Emirates Bank.

The program — the name of which comes from an Arabic word that means a guarantee or formal assurance that certain conditions will be fulfilled relating to a product, service or transaction — offers help to entrepreneurs to launch or grow their businesses. First they submit a financing request to one of the institutions that partners with Kafalah. If the lender needs guarantees to cover the risks associated with lending to new or developing businesses, it can request such a guarantees from the program.

If the program approves the request, it selects one of four specially designed products to meet the needs of the institution and the entrepreneur.

One of its products is designed for start-ups, offering extended support to build a strategic relationship with the General Authority for Small and Medium Enterprises and help meet their funding needs during  early growth.

The Kafalah program is also giving special attention to helping women in business; by the end of 2017, businesswomen accounted for 5 percent of the work of the program. To help achieve Vision 2030’s objective to empower businesswomen and encourage their increased participation in SMEs, the program offers preferential benefits to enterprises that are at least 50 percent owned by women.

A recent Kafalah report revealed that between the launch of the program in 2006 and the end of 2018 24,268 guarantees were issued for 6,291 establishments, worth almost SR 13.5 billion ($3.6 billion) and covering total financing worth SR 25.6 billion.

The program aims to support all types of businesses in diverse sectors such as tourism, entertainment, manufacturing, services, trading and agriculture. The construction sector is the largest single beneficiary, with 5,300 requests since 2006, followed by trading. The report also revealed that in terms of geography, the highest number of requests came from businesses in Riyadh, followed by the Eastern Region.

In 2018, Kafalah achieved a growth rate of 64 percent in the value of guarantees and 47 percent in the total amount of financing, compared with 2017.


Global stars shine at Saudi leisure forum

Updated 14 October 2019

Global stars shine at Saudi leisure forum

  • “It (Saudi Movies) will bring Saudis closer to the world and the world closer to Saudi,” Shahrukh Khan 

RIYADH: Saudi Arabia took another step toward establishing its place on the global entertainment map with a major industry event in Riyadh on Sunday.

The Joy Forum19 brought together entertainment promoters and pioneers from around the world, along with global stars such as Indian actor and film producer Shah Rukh Khan; Hong Kong martial artist, actor, film director Jackie Chan and Belgian actor and martial artist Jean-Claude Van Damme.

The event was organized by the General Entertainment Authority (GEA), which signed several important agreements on the day, including a financing guarantee program for small and medium-sized enterprises.

Participants are ushered in on the first day of the Joy Forum19 event in Riyadh. (AN photo by Noor Nugali)

“Our message is for both, locally and internationally. Me and my generation suffered a lot, we had lots of time on our hands,” GEA chairman Turki Al-Sheikh said at the event.

“Today you are witnessing things we have never had in Saudi Arabia. We have 300,000 visitors to our events, and our sales have hit 80 percent.

“Saudi Arabia has never seen anything like Riyadh Season, we have over 400 sponsors, which is unprecedented.”

Al-Sheikh announced that the authority had named a stadium after singer Mohammed Abdo, the “Artist of Arabs,” and another after Abu Baker Salim, the father of Khaleeji music. 


READ MORE: Three MoUs signed at opening day of Joy Forum19 in Riyadh



Drunken master

The actors expressed what it meant to be movie stars and how wide-reaching their influence could be.

Jackie Chan recalled that when he was a new actor, he often acted like a drunken fighter until he realized that he has a responsibility towards younger fans. 

Jackie Chan: no longer a "drunken master". (AN photo by Basheer Saleh)

“All over the world I keep drinking and fighting (in films).  I realized that I made drunken master cool — so I stopped,” he said. One of Chan's most popular movies was the 1978 action comedy martial arts film "Drunken Master".

“When you’re 20 you don’t have this inner thought — anything that makes the audience laugh you do, but later on especially (when I went) to Africa so many years ago — they started doing the drunken style — the children look up to me. So, I realized we have a responsibility to the children so all those years I corrected those actions: no dirty comedy words or action,” he said.

He attributed his awareness in being responsible for the content he produces to the fans. “I’m really thankful to the fans in making me a good actor.”

Chan spoke about his experience in acting martial arts in both the United States and Asia. “I realized we have two different markets one for America another for Asia. They are totally two different things.”

The safety measures the US takes for stunts is very impeccable making sure of the wellbeing of the actor comes first. However, in Asia it’s a different story, “In Asia when I want to do a stunt, I roll, jump (and then go to the) hospital, he said laughingly.

“It’s so difficult sometimes in the USA so many rules- Jackie Chan movies: NO RULES!” he said and received applause from the audience.

 

Good start

Jean Claude Van Damme gave a shout out and a big thank you to all his “brother and sisters from Saudi Arabia,” He said he got a royal treatment fit for “Kings and Queens”. He went on to reveal that his hotel room at the Ritz Carlton Riyadh was so big he could easily “roller-skate” in it.

Jean Claude Van Damme: "Let's do a movie together". (AN photo by Basheer Saleh)

“I’m honored to be invited here. I know it’s your first time to do this event, but I know it will have a very bright future and I hope next year you will invite more people,” he said.

He said he may not be a “good talker” but expressed his joy at being in Saudi Arabia saying. “I’m happy to be here and I hope to have more connection later with the audience.”

Van Damme remarked how that in every country in the world you have treasure actors and movies with different cultures, “In the Middle East I don’t know what the taste will be, but I know they love American, Asian and Indian movies. They have a broad taste. (Saudi Arabia) should do a movie with all of us together!”

 

Crossing barriers

Sharukh Khan emphasized the importance of every country telling their story through movies; “As long as we are telling the story in whatever language it doesn’t matter. Cinema crosses all barriers.”
 

Shahrukh Khan: "I'd audition for a Saudi movie". (AN photo by Noor Nugali)

With the opening of Saudi Arabia to the world and Cinemas, he said, “I can’t wait to talk about the Saudi films...It will bring Saudis closer to the world and the world closer to Saudi.”

“The stories that you tell should talk about goodness and people should be engaged with the content and it should bring them together. People want to laugh and sadly have to cry, to be entertained and to feel.”

Sharukh noted that Saudi Arabia has started to make movies and he’s watched the King Faisal movie, "Born a King". 

“You’ll always find gems in all movie industries and I think there’s are gems in Saudi and as a matter of fact one of the things I’d like to do is audition for a Saudi movie … Please give me an opportunity!” he said, eliciting a thunderous applause from the audience.


Red carpet

Abdulaziz AlMuzaini, co-founder and CEO of the Saudi Arabian Myrkott Animation Studio; gave a heartfelt thanks full of gratitude to King Salman and the Crown Prince Mohammed bin Salman, saying: “If it wasn’t for them, I wouldn’t have dreamed of this moment or this panel.”

Some of the celebrities invited to the event walk the red carpet. (AN photo by Basheer Saleh)

Lebanese actor Wahid Jalal, who was the voice of Long John Silver in Treasure Island, came onstage for the opening of the event. “Children love heroes and they try to imitate them,” he said. 

He also delighted the crowd by performing Silver’s famous laugh.

Some of the celebrities who walked down the red carpet were American actor Jason Momoa, star of Aquaman; Amr Adeeb, Balqis Fathi, Yusra, Boosy Shalabi, Lojien and Aseel Omran, Mohammed Hamaki, Nawal AlZoghbi, Talal Salama, Ahlam Al-Shamsi, Hussain AlJismi, Suad Abdulla, Ibrahem Alharbi, Tariq Alali and Abdulnaser Darweesh.

The gala dinner hosted 500 guests and was a private event, but the red carpet captured the essence of where Saudi is moving to culturally.