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“Nusaned” SABIC Initiative Signs an Agreement with “Kafalah” to Facilitate Financing of Entrepreneurial Projects and Sup

16/02/2021

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The Saudi Basic Industries Corporation (SABIC), represented by its national initiative "Nusaned", signed a cooperation agreement with the Small and Medium Enterprises Financing Guarantee Program (Kafalah), on Monday, October 12, 2020 at SABIC's headquarters in Riyadh.


The agreement aims to facilitate the financing of entrepreneurial projects and to overcome the obstacles and challenges facing the small and medium enterprises sector in order to promote it and increase its contribution to the national economy in line with the Kingdom's vision 2030.

 

The agreement was signed by Mr. Faisal Al-Bahair from the “Nusaned" Initiative, the Vice President of the Local Content and Business Development Unit at SABIC, and Mr. Homam Hashem, Director General of the Kafalah Program. Under this cooperation, the Kafalah Program will provide the necessary guarantees to private sector financiers to support the enterprises supported by the Nusaned Program, which in turn seek to obtain funding to develop and expand their business, as the pre-guarantee documents for financing serve as a guarantor towards the financiers in accordance with the products approved by the Program.

The "Kafalah" Program is concerned with facilitating the financing of economically viable small and medium enterprises that do not have the ability to provide the required guarantees to the financiers. The Program helps the small and medium enterprises sector obtain the necessary funding to develop and expand its activities, and encourage financial institutions to deal with this sector, to achieve its important role in the national economy through its contribution to providing new job opportunities and developing economic activity in a number of promising regions and sectors, thus achieving the Saudi Vision 2030.

 

It is worth noting that the “Nusaned" initiative was launched in January 2018, in order to achieve the localization goals of SABIC and develop the local industry. The initiative is an integrated localization engine to achieve the Saudi Vision 2030, as it aims to help investors in related fields to obtain available support packages and means, create local demand and investment opportunities​