Kafalah Programme – Supporting SME segment in Saudi Arabia

SME (Small and Medium Enterprise segment) is a key growth area in Saudi Arabia.

The Kafalah Programme aims to provide access to finance in partnership with the Saudi Industrial Development Fund (SIDF). Backed by this programme, Saudi banks will be in a position to finance eligible customers up to SAR 2 million.

The Kafalah Programme

The basic objectives of the Kafalah Programme are as follows:

  • Enabling SMEs to obtain the necessary funding in line with Shariah principles in order to develop and expand their activities and encourage banks to finance the business activities of small and medium-sized enterprises
  •  Encourage banks to finance the business activities of small and medium-sized enterprises
  • The Kafalah Programme, enhancing the capabilities of SME customers through financing in order to help them produce innovative and high-quality products and services
  • Enhancing the Gross Domestic Product (GDP) of the Kingdom
  • Developing the small and medium-sized enterprise sector in order to add value to the industry and contribute to the Saudi economy
  • Creating job opportunities
  • Developing SMEs in remote areas
  • Encouraging banks to deal with the SME business segment

Fields of Activity

Sponsored Fields of Activity include:

  • Various industrial fields of activity relating to goods, equipment, tires, computers, software, furniture, medicines, pharmaceuticals, building materials, as well as electrical installation and construction works are included in the Programme
  • Medical centres, clinics and educational services
  • Contracting services for infrastructure, transportation, operations, maintenance, supply and installation needs


Financing in line with the Kafalah Programme targets small and medium-sized enterprises where annual sales do not exceed SAR 30 million. Required Documents:

  • Copy of your ID
  • Copy of the Commercial Registration certificate
  • Business license
  • Copy of the company's Articles of Association in case that the client is not an establishment.
  • Copy of the business plan
  • Audited financial statements for past three operating years (for existing businesses)
  • Cash flow projections for the next three years for existing/ new businesses
  • The rental contract/ ownership certificate

Financing Terms

  • The maximum financing amount granted through the Kafalah Programme is SAR 2 million. The guaranteed amount offered in line with the Kafalah Programme is a maximum of SAR 1.6 million and a minimum of SAR 80,000
  • The above-mentioned limits depend on the guarantee amount, which should not exceed 80% of the total finance amount granted to the client by the bank
  • Any financing granted through the Kafalah Programme will treat customers who have the same Commercial Registration (CR) number as one
  • The maximum financing period is seven (7) years
  • Financing granted through the Kafalah Programme only applies to Shariah-compliant products
  • The entity should be legal (individual institution - a joint venture - a limited liability company), and it needs to have a budget that was audited by a licensed financial accounting company in the Kingdom of Saudi Arabia

Apply Now

To apply please complete the following application forms: