RIYADH: Almost 12,000 Saudi entrepreneurs received support and training from the Kingdom’s Social Development Bank in the first quarter of 2024, it was revealed.
Minister of Human Resources and Social Development Ahmed Al-Rajhi announced in a post on X that SDB provided financing worth SR1.85 billion ($493 million) in the first three months of this year.
The financing aims to “support individuals and enterprises to contribute to economic development and sustain efforts toward national sustainable growth.”
During the same period, assistance for small and startup businesses amounted to SR606 million for over 1,700 establishments.
Furthermore, empowerment support for vibrant and productive communities reached SR640 million, benefiting 12,000 citizens through various social developmental products, including marriage, family support, and restoration.
Assistance for freelancers and productive families also surged to SR600 million, benefiting 13,000 individuals.
Additionally, the number of savings accounts increased by 13,000, reaching a total of 245,000, with a balance exceeding SR525 million.
According to the Small and Medium Enterprises General Authority, Saudi Arabia witnessed a 3.1 percent uptick in its small and medium enterprises during the fourth quarter of 2023, totaling 1.3 million establishments.
Recognized for their pivotal role in diversifying income streams and stimulating economic progress, SMEs are a cornerstone of Saudi Arabia’s economic landscape.
Credit facilities extended to micro, small, and medium-sized enterprises experienced an 18 percent year-on-year surge in the third quarter of 2023.
Figures from the Saudi Central Bank underscored a notable increase in borrowing lines allocation to this sector, totaling SR268.57 billion in the three-month period ending October 2023, up from SR228.03 billion in the corresponding period of the preceding year.
This increase is credited to governmental endeavors aimed at bolstering support for SMEs.
In January, SDB signed 24 deals worth SR1 billion to support entrepreneurs across various sectors in the Kingdom.
Inked during the Entrepreneurship and Modern Work Patterns Forum, the memorandums of cooperation encompassed a broad spectrum of sectors, including health, transportation, and logistics.
This aligns with the objectives of Vision 2030, aiming to reduce the unemployment rate, enhance women’s participation in the workforce, and expand the contribution of small and medium-sized enterprises to 35 percent of the gross domestic product by the end of the decade.
Speaking at the time, CEO of SDB Ibrahim Al-Rashid said those deals would “open new horizons for entrepreneurship and small and emerging enterprises" by developing new systems for financing, training and qualification.
Last year, the bank introduced a range of training programs to assist small businesses across the Kingdom.
The courses covered key areas such as marketing and administration, allowing business owners to meet and discuss their development plans with local and international experts.
