In an effort to develop the Kingdom's non-oil private sector in line with the objectives outlined in Vision 2030, Saudi Arabia's Social Development Bank provided over 30,000 small businesses, startups, and self-employed business owners with over SR2.9 billion ($770 million) in financing in the first quarter of 2023.
In the first quarter, nearly 9,000 people received social financing worth SR538 million, while 2,000 small businesses and startups obtained funding worth SR1 billion, according to the bank's board report.
The study also mentioned that the bank provided loans totaling SR1.4 billion to over 23,000 families and self-employed business entrepreneurs.
Sultan Al-Hamidi, the chief business officer of SDB, stated in an exclusive interview with Arab News last month that the bank intends to invest SR24 billion in small and medium-sized businesses over the following three years.
He further mentioned that in 2022 alone, the bank gave 9,000 Entrepreneurs SR5 billion in loans.
Al-Hamidi pointed out that Saudi Arabia provides SMEs with a significant growth opportunity and that the Kingdom has a higher average success rate among entrepreneurs than the worldwide average.
The bank has provided 40,000 small and medium-sized businesses with loans totaling about SR16 billion since establishing a sector specifically for them in 2008.
Al-Hamidi noted that following a careful screening procedure, the organisation helps Businesses. Additionally, the bank disburses funds in instalments to guarantee that business owners successfully carry out their goals.
“We start with them from the idea. We interview them, and we make sure that they have very good training for two weeks to make sure that they can do a feasibility study,” said Al-Hamidi.
The bank makes part of the loan disbursement as the feasibility study is finished.
“We give the entrepreneur and then we visit. Then we deploy another 25 percent after six months. So, over two years, we have four interactions with the entrepreneur to make sure that the plan which was submitted is really executed,” explained the bank executive.
SDB is regarded as one of the top government pillars for subsidising citizens' economic and social growth.