JEDDAH: The Centennial Fund (TCF), a nonprofit organization established by Custodian of the Two Holy Mosques King Abdullah as part of his economic reform initiative, has grown fivefold in only three years, according to its third quarter performance report for the year.
The report revealed that the TCF approved its 1,149th loan (a sum of SR195,330) since its inception in 2005.
Beginning as a pilot program consisting of only 20 clients, the fund reportedly financed 131 young aspiring Saudi businessmen and women in 2006, 433 in 2007, and 685 this year.
Nawaf A. Al-Massoud, TCF’s chief operating officer, said the organization is also planning to support, serve and finance an additional 1,000 young Saudis with a capital of over SR170 million by the end of the year.
“As of Sept. 30, 685 entrepreneurs were granted loans to start businesses, a quarter of them young Saudi women,” Al-Massoud said, adding that approximately 65 percent of the projects are outside the Kingdom’s major cities.
Attesting to the strong demand and success of the program, Al-Massoud said the organization received and processed 15,210 applications for review this year, and has set the goal of assisting as many as 2,000 potential business owners in 2009.
He added that the fund would integrate a Credit Scorecard & Risk Management System into the TCF database in addition to including 6,000 qualified and active mentors and volunteers into the computer system. It will, at the same time, strive to raise SR1 million in new and secure sources of funds.
“In 2008, the TCF signed strategic partnership agreements with different organizations which contribute positively to TCF’s success — such as Saudi Credit and Savings Bank, the Al-Zamil Group and the Saleh Kamel Fund — to help young Saudi entrepreneurs start businesses,” he said.
The idea of starting the fund was first proposed by Britain’s Prince Charles during a visit to Saudi Arabia on the occasion of the Kingdom’s centenary celebrations in 2001.
Many in the Kingdom — where nearly half the population is under 25 and the unemployment rate is estimated to be between 9 and 12 percent — consider the TCF a lifesaver, especially for young Saudis who would otherwise have no chance of securing jobs or having a future.
One such example is Maha Al-Thebaity, a 34-year-old Saudi mother of five who dropped out of school at the intermediate stage.
Al-Thebaity always had an interest in makeup and hairdressing, and used to do it as a hobby. She then decided to take up her hobby as a source of income for her family after her husband became unemployed.
Her only obstacle, however, lay in financing her project. In the meantime, she taught herself the latest styles of makeup and hairdressing from magazines. Finally, after mastering several styles she set out to land her first job at local salons, which all turned her down.
“I was trying to convince the salon owners that I was talented and to give me a chance but they refused to hire me because I was Saudi and they know that most customers don’t trust our work,” Al-Thebaity said in an article posted on the TCF website.
Later, she heard about the TCF and applied for a loan to start her own business. After around two months she received a call for an interview and received a loan for SR100,000 to finance her own salon, which she called Amwaj Al-Jamal.
“I want to send an important message to all youths who can’t find work. They shouldn’t despair and instead trust their abilities. More importantly, they should never stop trying to benefit by any possible means,” she said.
