The Small and Medium Enterprises Financing Guarantee Program was established pursuant to His Excellency the Minister of Finance Decision No. (1166) dated 05/04/1425 AH. with the aim of overcoming obstacles to financing small and medium enterprises that are economically viable and that do not have the ability to provide the required guarantees to financing agencies.
The program aims to assist small and medium enterprises in obtaining the Islamic financing necessary for the development and expansion of their activities, and to encourage financial institutions to deal with the small and medium enterprises sector, in addition to attracting a new segment of owners of small and medium enterprises that are not accustomed to dealing with financing agencies in order to develop and develop the sector. Small and medium enterprises to achieve their important role in the national economy through their contribution to creating new job opportunities and developing the governorates that are less economically active.
YANAL is one of the first companies, from the non-banking finance sector, to sign up to the “Kafalah” initiative. The percentage of credit guarantee provided by “Kafalah” depends on the industry or sector in which a business operates.www.kafalah.gov.sa