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History Overview

Pursuant to the Royal Order No. 7/B/510 dated 23/01/1422 AH approving the proposal for establishing an integrated government program for activating the role of SMEs, a sector known for its undeniable positive socio-economic contribution, H.E. the Minister of Finance issued his decision No. (1166) dated 04/05/1425 AH to approve the Regulatory Rules of the Small and Medium Enterprises Financing Guarantee Program. The Management of the Program was assigned to the Saudi Industrial Development Fund, as a joint development initiative between the Ministry of Finance and commercial banks cooperating with the Program.

The Program aims to overcome the obstacles to the financing of SMEs. As known, SMEs are economically viable; however, they are unable to provide the required guarantees to obtain financing by covering a percentage of the financier's risk in the event guaranteed activity fails to repay the financing or part thereof. The Program also aims to encourage banks to finance this type of enterprises.​