SABB obtains the first guarantee of finance for small and medium enterprises

SABB has recently obtained the first guarantee by SIDF, which manages (SME Finance) scheme in consideration of financing a national enterprise which is involved in recycling of industrial remains by way of Murabaha, a product of SABB Amanah Islamic Banking Services for corporations.

The guarantee is the first of its kind under the SME Finance Scheme, which has been established by the Ministry of Finance and local banks. The scheme guarantees to local banks a share of the finance extended to small and medium enterprises. It also aims at enabling small and medium enterprises to obtain the necessary finance in line with Sharia principles to develop and expand their activities as well as to encourage banks to finance this category after ascertaining their economic feasibility.

Commenting on this event, Sheikh Abdullah Al-Hugail, the Chairman said " this represents a precedent in the economy of the Kingdom and adds to the achievements of SABB at the level of Saudi Banking sector. SABB contributed to this program based on its belief in the program objectives and on the anticipated benefits to citizens and the economic and business environment as a whole. The program contributes to the upgrading of local enterprises competition capabilities and positively reflects on the Saudi economy in view of the job opportunities provided, training and recruitment of nationals as well as substitution of imported commodities with local products. This is in addition to increasing the capabilities of financed enterprises to produce innovative products and services of high quality".

It is worth mentioning that the SME Finance Scheme management has agreed to issue a guarantee favoring SABB guaranteeing 50% of the value of finance provided by SABB to a firm active in the environment protection fields.