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JEDDAH: Entertainment focused small and medium enterprises in �������� experienced a 98 percent year-on-year increase in financing during the second quarter of 2025. 

The Small and Medium Enterprises Financing Guarantee Program, also known as Kafalah, supported 32 establishments and issued guarantees exceeding SR79 million ($21 million), the Saudi Press Agency reported. 

The number of beneficiary establishments rose 78 percent compared with the same period in 2024. By the end of the quarter, 94 enterprises had benefited from the program’s entertainment sector product, receiving total financing of more than SR304 million and guarantees totaling SR225 million.

Kafalah works in partnership with the General Entertainment Authority and financial institutions to provide guarantees that reduce financing risks and broaden access to capital. The initiative is part of Saudi Vision 2030’s strategy to foster economic growth and develop promising sectors.  

The SPA report noted that this growth in the entertainment sector highlights “the effectiveness of the product in supporting the sector’s growth and facilitating establishments' access to appropriate financing solutions.” 

It added: “The Kafalah program continues its commitment to supporting vital sectors by providing financial guarantees that contribute to reducing financial risks and expanding the scope of financing through effective partnerships with financing entities, supported by an integrated technical and knowledge system.” 

Kafalah’s Entertainment Product provides financial guarantees to SMEs across various entertainment sectors, including supporting industries, offering coverage of up to 90 percent of the funding value, according to its website.  

Maximum guarantee limits are SR2.5 million for micro enterprises, SR5 million for small enterprises, and SR15 million for medium enterprises. Enterprises can apply directly through cooperating financial institutions or via the SME Bank’s finance portal, with the program reviewing requests and issuing guarantees to the financier upon approval. 

Since its inception in 2020, Kafalah has issued more than 64,000 guarantees valued at SR72.5 billion, supporting over 23,000 enterprises and creating nearly 1 million jobs, according to a release issued in September 2024.  

Twenty-seven enterprises have transitioned from medium-sized firms to the parallel market, while 8 percent of micro-enterprises have grown into small and medium-sized businesses. 

The program also reduced the average processing time for guarantees from 48 working days to just 36 hours using AI-driven systems. Studies conducted with King Fahd University of Petroleum and Minerals found that Kafalah-supported enterprises experienced a 17.3 percent increase in employment compared with those relying on traditional financing. 

Over the past five years, the Kafalah program has contributed nearly SR27 billion to ��������’s gross domestic product, highlighting its role in expanding the Kingdom’s SME ecosystem. 

DUBAI: Humain, ��������’s new artificial intelligence company, has begun construction of its first data centers in the Kingdom, and plans to bring them online in early 2026 using semiconductors imported from the US, Bloomberg News reported on Monday.
Locations in Riyadh, ��������’s capital, and Dammam, in the Eastern Province, are expected to launch in the second quarter, each with an initial capacity of up to 100 megawatts, CEO Tareq Amin told Bloomberg in an interview.
Humain is currently sourcing semiconductors for its data centers from US chipmakers, including Nvidia’s latest AI chips, for which it has received local regulatory approval, Amin told Bloomberg.
In May, Nvidia said it would sell hundreds of thousands of AI chips in ��������, with a first tranche of 18,000 of its newest “Blackwell” chips going to Humain.
Nvidia declined to comment on the report, while Humain did not respond to Reuters when contacted.
A number of US technology firms announced AI deals in the Middle East in May, as US President Donald Trump secured $600 billion in commitments from �������� to US companies during a tour of Gulf states.
Chip designer Advanced Micro Devices also announced a deal with Humain, saying it has formed a $10 billion collaboration.
Humain was launched in May under the Public Investment Fund, and is chaired by Crown Prince Mohammed bin Salman. It offers AI services and products, including data centers, AI infrastructure, cloud capabilities and advanced AI models.