JEDDAH — Bab Rizq Jameel Microfinance Company has teamed up with Kafalah, the Saudi government’s SME financing program, and will work together to support small and medium enterprise in Saudi Arabia and help get their businesses off the ground.

The agreement was signed by Hamam Hashem, director-general of Kafala, and Abdelrahman Alfehaid, executive director of Bab Rizq Jameel Microfinance. Both parties have committed to exploring ways to collaborate, with Bab Rizq Jameel Microfinance, enabling Kafalah to help SMEs secure funding from Bab Rizq Jameel Microfinance.

The agreement is aimed at supporting Bab Rizq Jameel Microfinance in offering finance for microenterprises by providing financial guarantees covering part of the risks associated with financing, in accordance with the Shariah Committee approved formats. In addition, the agreement is aimed at strengthening the mutual collaboration between the two parties in supporting the microenterprises and providing all the necessary services to these enterprises to help them thrive and achieve their ambitions.

They will also conduct research to identify the best ways of cooperation, with the aim of providing joint training and awareness programmes to develop the SME sector. In addition, the agreement is intended to attract new group of beneficiaries who have never dealt with finance institutions before, with the aim of developing micro-enterprise sector and helping them play an important role in national economy and contribute to creating new jobs.

Kafalah provides assurances and financial guarantees to lenders on behalf of SMEs, allowing businesses with viable concepts and business models to push their companies to the next level. With a proven record in supporting entrepreneurs, Bab Rizq Jameel Microfinance is the ideal partner. It is the first Saudi company licensed to practise microfinance in Saudi Arabia and has branches across Saudi Arabia. The company operates in accordance with the guidelines of the Saudi Arabian Monetary Authority and has a successful history in the management and provision of finance to SMEs and other beneficiaries giving Kafalah the confidence that it is best placed to help achieve their goals as part of the efforts to achieve the goals of the Saudi Vision 2030.

Abdelrahman Alfehaid said: “We have 16 years’ experience in microfinance and have provided interest-free funding to more than 300,000 beneficiaries, to a total value of more than SR2 billion.”

“In signing this agreement with Kafalah, we want to explore possible means of collaboration to support Saudi young men and women by offering soft loans which will enable them establish promising projects and contribute to job creation and social and economic development.”

Bab Rizq Jameel Microfinance Company supports small enterprises by offering various Shariah-compliant products with easy payment plans for young Saudi young men and women, help them create employment and improve their quality of life.

Those eligible to receive financial support must have existing enterprises or ideas and have proven entrepreneurial skills. The company works closely with applicants and provides a range of financial products to help customers meet each specific need.

Finance options include productive household finance (for ladies only), home project finance (to support home-based projects), and other finance products designed for small enterprises and entrepreneurs. The company offers flexible and affordable payment plans, with easy monthly installments. — SG