Arab News, Thu, Apr 25, 2024 | Shawwal 16, 1445
Saudi entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024
Saudi Arabia:
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.