Small and Medium Enterprises Bank

The Small and Medium Enterprises Bank (SME Bank) is a Saudi development bank that offers its products and services digitally without needing physical branches. It was established by a decision of the Council of Ministers on February 16, 2021, and operates under the supervision of the Saudi National Development Fund. To foster the growth of small and medium-sized enterprises across all cities in Saudi Arabia, the bank offers digital financing solutions that enable businesses to expand their operations. These solutions are designed to be accessible to companies of all sizes.

In 2018, the General Authority for Small and Medium Enterprises (Monsha'at) combined several financing initiatives and programs to create the bank. This included the Saudi Venture Capital Company, which brought the bank's total capital to SAR2.8 billion, the non-direct lending initiative with a capital of SAR 1.6 billion, and the guarantee program with a capital of SAR 1.6 billion.

Between 2018 and the end of 2020, SME Bank provided SAR2 billion to 1,736 establishments through its indirect lending initiative. Since its launch in 2018 until the end of 2020, the Saudi Venture Capital Company has approved around SAR1 billion for a total of 182 investment contracts. Additionally, the Kafalah Program's capital has now reached SAR1.6 billion. This program has provided financing guarantees to a total of 11,266 establishments, amounting to SAR32.2 billion since its launch in 2018 until 2020.

The SME Bank budget was announced during the Global Entrepreneurship Congress in 2022 and is estimated at approximately SAR12 billion. In 2023, the Small and Medium Enterprises Bank allocated SAR10.5 billion for financing programs and products to support the small and medium enterprises sector.

SME Bank aims to increase SME sector funding and bridge the financing gap, enhance the contributions of financial institutions in providing innovative financing solutions, raise the contribution of small and medium enterprises to the Gross Domestic Product (GDP) to 35 percent by 2030, and increase the proportion of financing for SMEs to 20 percent of the total commercial funding.

The SME Bank provides financing services based on the number of full-time employees and the annual revenues for each establishment. This includes micro-enterprises with one to five full-time employees and annual revenues ranging from zero to SAR3 million. Small enterprises with six to forty-nine employees with annual revenues ranging from SAR3 million to SAR40 million are also included. Additionally, medium-sized enterprises from fifty to 249 employees with annual revenues ranging from SAR40 million to SAR200 million are encompassed in the bank's services.