JEDDAH:聽Entertainment focused聽small and medium enterprises in 黑料社区 experienced a 98 percent year-on-year increase in financing during the second quarter of 2025.聽
The Small and Medium Enterprises Financing Guarantee Program, also known as Kafalah, supported聽32 establishments and issued guarantees exceeding SR79 million ($21 million),聽the Saudi Press Agency reported.聽
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鈥檚 entertainment sector product, receiving total financing of more than SR304 million and guarantees totaling SR225 million.
Kafalah聽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鈥檚 strategy to foster economic growth and develop promising sectors.聽聽
The SPA report noted that this growth in the entertainment sector highlights 鈥渢he effectiveness of the product in supporting the sector鈥檚 growth and facilitating establishments' access to appropriate financing solutions.鈥澛
It added: 鈥淭he 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.鈥澛
Kafalah鈥檚 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.聽聽
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鈥檚 finance portal, with the program reviewing requests and issuing guarantees to the financier upon approval.聽
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.聽聽
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.聽
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.聽
Over the past five years, the Kafalah program has contributed nearly SR27 billion to 黑料社区鈥檚 gross domestic product, highlighting its role in expanding the Kingdom鈥檚 SME ecosystem.聽
