Bab Rizq Jameel Microfinance Company has teamed up with Kafalah, the Saudi government’s SME financing program, to work together to support small and medium enterprises in Saudi Arabia and help get their businesses off the ground.
The agreement was signed by Hamam Hashem, director-general of Kafala, and Abdelrahman Alfehaid, executive director of Bab Rizq Jameel Microfinance.
The agreement is aimed at supporting Bab Rizq Jameel in offering finance for microenterprises by providing financial guarantees covering part of the risks associated with financing, in accordance with the Shariah committee-approved formats. In addition, the agreement aims at providing all the necessary services to microenterprises to help them thrive and achieve their ambitions.
The two entities will also conduct research to identify the best ways of cooperation, with the aim of providing joint training and awareness programs to develop the SME sector. The agreement also aims to attract a new group of beneficiaries who have never dealt with financial institutions before, with the aim of helping the microenterprise sector play an important role in the national economy by contributing to the creation of new jobs.
Kafalah provides assurances and financial guarantees to lenders on behalf of SMEs, allowing businesses with viable concepts and business models to take their companies to the next level. With a proven record in supporting entrepreneurs, Bab Rizq Jameel Microfinance is the ideal partner. It is the first Saudi company licensed to practice microfinance in Saudi Arabia and has branches across the Kingdom. The company operates in accordance with the guidelines of the Saudi Arabian Monetary Authority and has a successful history in the management and provision of finance to SMEs and other beneficiaries.
Alfehaid said: “We have 16 years’ experience in microfinance and have provided interest-free funding to more than 300,000 beneficiaries, to a total value of more than SR2 billion ($530 million).
“In signing this agreement with Kafalah, we want to explore possible means of collaboration to support young Saudi men and women by offering soft loans, which will enable them to establish promising projects and contribute to job creation and social and economic development.”
Bab Rizq Jameel Microfinance Company supports small enterprises by offering various Shariah-compliant products with easy payment plans for young Saudi men and women.
Those eligible to receive financial support must have existing enterprises or ideas and proven entrepreneurial skills. The company works closely with applicants and provides a range of financial products to help customers meet specific needs.