The Centennial Fund is a Saudi Arabian charity established in July 2004 with a royal charter to help young Saudi men and women achieve financial independence by helping them start their own commercial ventures.
The Fund was established as part of the government’s efforts to create more jobs and business opportunities for young Saudi men and women. The idea took root following the Kingdom’s celebration of its centennial anniversary, when the first in line to the British throne Prince Charles floated the idea to Saudi Arabia in 2001. The Fund serves as a professional economic tool for the employment of Saudi youths, while also helping the Saudi economy to diversify into small businesses.
The Centennial Fund, one of the economic reforms introduced by Custodian of the Two Holy Mosques King Abdullah, offers financial aid worth SR150 million to young Saudi men and women who intend to open their own businesses. Since its launch, The Centennial Fund has helped 146 women by giving SR19,712,729 worth of loans.
The process for applying for loans starts with filling out an online application, and if the business plan is accepted the applicant is called in for three interviews. One of the interviews is to discuss and finalize the feasibility study. The applicant, after studying all possibilities, will receive a final decision. If the loan is granted then the applicant signs a contract with a mentor and then signs the loan contract with The Centennial Fund. The Fund gives loans starting from SR50,000 up to SR200,000.
The Fund is also a job provider, not only for the women benefiting from the loans but also for those seeking new jobs. The Fund gives loans for different women projects and each project provides new jobs opportunities for other women.
The list of projects to which finance is provided for women includes photography studios, decoration boutiques, cafes and restaurants, nurseries and schools, bookstores and copy centers, advertising agencies, beauty salons, computer stores, party and events coordination, clothes boutiques, training centers and small institutes.
The Fund has provided loans to 259 working projects that offered 695 new jobs opportunities, 119 of which were provided to women. Najla Al-Tasan, who owns a beauty salon in Riyadh, started her business in March 2007 with a tailor and a hairdresser. After building a reliable customer base, Najla hired another hairdresser, four more tailors and two drivers to support with the logistics.
Najla says getting the loan is just a first step, as the Fund safeguards its interests by appointing a mentor to see that the startups succeed.
The applicant must have a volunteer business mentor, whose job it is to assure the repaymentof the loan and to act as a counselor.
Linda Rashwan, a Madinah-based businesswoman, opened a women’s clothes and accessories boutique at Al-Kaaki Mall. She applied for a loan at the Fund and opened the Al-Fawj Al-Ahmar Boutique. Starting with only one employee and herself, now Linda has two employees and will soon expand her business to Jeddah.
She was introduced to the Fund’s program more than two years ago through a training program. “I had applied to a training course sponsored by the National Commercial Bank,” said Linda. “I already had a mentor in mind. She was the one who tutored us in the training course. She knew everything about my project and worked with me step by step as a friend more than a mentor. The loan I received from The Fund was SR164,000 but my total capital was SR200, 000. The idea of starting my own business was on my mind for some time but financing was not available until I applied to The Fund,” she said.
The Centennial Fund has many branches around the Kingdom: Jeddah, Madinah , Tabuk, Jizan, Hail, Najran, Rabigh (King Abdullah Economic City) and a women’s branch in Riyadh.
Salha Otaif is another woman who pursued a dream of owning a business. She heard about the Fund from a friend and immediately applied for a loan. Now, Otaif owns Asraa Center for Women located in Jizan, a beauty and sewing saloon with SR89,445 in startup capital.
“The Fund’s procedures are easy and there are no impediments,” said Salha.
She also praised the work of the women’s section. “My mentor worked in tandem with me. She followed up on every detail and made sure everything was ready,” she said.
The fund studied Salha’s project for a month before agreeing on the project and singing a contract. However, after one year from launching her project, Salha said that paying the installments is not hard. “Up to now, I have not made any profit from the center with all the installments, bills and paying the employees,” she added. “Beauty salons have their seasons but my business is doing just fine. I also want to expand in the future and open other branches.”
Sada Al-Tofoula Kindergarten (Childhood Echo Kindergarten) is a project established a year ago in Makkah by Nadia and Afaf Al-Seeni.
“We first heard of the Fund from a reporter at The Ministry of Education. We contacted the Chamber of Commerce who in turn guided us to the Fund,” said Nadia, the principal of the school. Then, they registered online and went through all the required procedures. “The interview, the feasibility study and the loan procedures took up to six months,” Nadia added.
The idea of establishing the kindergarten and a 24-hour nursery was acted on following the need of parents to put their children in a safe place and in trusted hands Nadia said.
“Teachers rotate at every eight-hour shifts. We believe that our idea of such a place was highly accepted but we need more financial support,” she added.
The school now has 22 Saudi teachers. However, Nadia wants to expand with more employees and increased space for children.
“We are organizing programs for children and parents awareness. All the money we get goes to develop and provide more lectures and workshops for parents and children,” Nadia said.
