Saudi SME Bank Signs $801M Agreement to Boost Small Business Financing

Saudi SME Bank has signed development finance agreements worth $801 million with a group of local and regional financial institutions, in a move aimed at expanding funding access for small and medium-sized enterprises across the Kingdom.

According to the bank, the agreements are designed to increase the flow of financing to SMEs by supporting lending programmes, credit guarantees, and specialised funding solutions. The initiative targets businesses operating across priority sectors, including industry, services, and emerging economic activities.

Saudi SME Bank stated that the agreements form part of its mandate to address financing gaps faced by SMEs and to strengthen the role of the private sector in economic growth. The bank works alongside commercial lenders and development partners to reduce risk and improve credit availability for businesses at different stages of growth.

The new financing commitments align with Saudi Arabia’s Vision 2030 objectives, which prioritise SME expansion as a driver of job creation, diversification, and non-oil economic development. SMEs currently account for a growing share of employment and private-sector output in the Kingdom.

Saudi SME Bank was established to provide targeted financial support, advisory services, and partnerships that enable businesses to scale sustainably and compete more effectively within the local and regional market.