DAMMAM: A recent research by the International Chamber of Commerce, Saudi Chapter, revealed that 53 percent of funding applications from small-and medium-size establishments have been rejected.

The research showed that 80 percent of those surveyed thought that anti-financial crime laws constitute an obstacle in commercial funding. Chairman of the Saudi International Chamber of Commerce Yasin Srour said that despite slackness in recent years, around 63.3 percent of participants in the global survey conducted by the chamber this year said there is growth in commercial funding.

He said results showed that applications were rejected due to lack of adherence to proper procedures, protocols and rules. Major companies received 79 percent of financial commercial dealings, he added.

Results of the survey were worrying in regards to adherence to financial rules, with 80 percent of those surveyed saying anti-financial crime laws obstruct commercial funding, and 70 percent said strict laws to fight money laundering were the reasons behind declined funding.

Srour said 46 percent of banks included in the study rejected funding because of the cost and complexity of the funding procedures. Around 91 percent of the sample expected an increase in commercial funding applications during the coming years.

He pointed out that Saudi Commerce Funding Summit will be held between November 10-11, in cooperation with the International Saudi Chamber of Commerce. He said that the summit fill focus on organizations working in commercial funding and seizes opportunities to develop new financial products that suit the global market.

Commercial funding in the Kingdom forms the basis for new organizations to find a place in the economic variety of the government.