Dubai, United Arab Emirates (CNN) – Saudi Arabia announced on Tuesday the launch of the Small and Medium Enterprises Bank as one of the development funds and banks of the National Development Fund, with the aim of increasing financing to the sector, which the kingdom considers one of the most important engines of economic growth.
The Saudi Press Agency said that the General Authority for Small and Medium Enterprises, Monsha’at, took the decision with the aim of bridging the financing gap in small and medium-sized enterprises and enhancing the contribution of financial institutions in providing innovative financing solutions and achieving financial stability for the sector, “to be a basic pillar for economic development in the Kingdom of Saudi Arabia.” Saudi Arabia and a place to achieve Vision 2030, “according to the statement.
The bank will provide all its products and services digitally, without the need to establish physical branches, in order to facilitate access to services for all regions.
Monsha’at took the decision to establish the bank based on a benchmarking study that included 14 countries, to examine best practices in supporting financing small and medium enterprises, analyzing the current situation and identifying financing gaps.
The statement said that “Monshaat” established the bank to be “an umbrella for all financing solutions, including lending and capital financing, and ensuring financing and alternative financing, to create a stimulating environment that meets the basic needs of small and medium-sized enterprises and provides them with opportunities for growth and prosperity.”
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