About Kafalah

The Small and Medium Enterprises Finance Guarantee Program (Kafalah) provides essential guarantees for financiers to assist micro, small, and medium enterprises (MSMEs) and entrepreneurs in securing the financing necessary for their development. The program aims to encourage financiers to engage with the SME sector and attract a new segment of MSME owners who have not previously sought funding. Kafalah Program aligns with the goals and themes of Saudi Vision 2030, developing initiatives and products in collaboration with participating financiers and relevant entities. This ensures that the program has a meaningful and positive impact on the development and sustainability of SME sector, ultimately benefiting the Kingdom's economy. The program covers the following:

  • Micro enterprises: employees between 1 and 5, with sales or revenues of up to   3 million.
  • Small enterprises: employees between 6 and 49 people, with sales or revenues between   3 million and   40 million.
  • Medium enterprises: employees 50 to 249 employees, with sales or revenues between   40 million and   200 million.
     

Kafalah Financing Process:

  1. SME customer submits the required documents to the bank.
  2. The bank evaluates the applicant’s request in accordance with its policies.
  3. If the request approved, the bank submits a Kafalah guarantee application to the program, along with written approval from the business owner accepting the guarantee.
  4. Once the program approves the request, it issues a Kafalah guarantee to the bank. The SME customer may be asked by the program to provide the necessary guarantees.
  5. After the credit line agreement and the personal guarantees of the issued Kafalah is signed by the bank and the customer, the process to obtain the finance will start.
     

Required documents:

  • Copy of valid commercial register.
  • Copy of the national ID or Iqama of the individual business owner, or a copy of articles of association of the partner group.
  • Balance sheets or financial statements of business.
  • GOSI valid certificate.
  • ZATCA valid certificate.
  • Saudization valid certificate.
  • A valid copy of license.
  • National address.
  • VAT registration certificate.

Terms and Conditions:

  • Business must meet the minimum credit and risk acceptance criteria established by The Saudi Investment Bank and Kafalah Program.
  • Business must operate under a legal entity (sole proprietorship, limited liability company, or any other legal entity).
  • Business must have a permanent location or outlet.
  • Business and its owners must have a positive credit history as recorded in SIMAH.
  • Audited financial statements for the past three years are required.
  • Business must demonstrate positive financial indicators.