Monsha’at signs SAR 5 billion financing deal with STC Bank
Monsha’at has signed a cooperation agreement with STC Bank for up to SAR 5 billion in financing for Saudi SMEs.
Riyadh: 17 September, The Small and Medium Enterprises General Authority (Monsha’at) has signed a cooperation agreement with STC Bank that will provide financing solutions worth up to SAR 5 billion for micro, small and medium-sized enterprises across Saudi Arabia.
The agreement was signed on the sidelines of the Money20/20 conference in Riyadh as part of efforts to expand financing options available to businesses and support the development of the Kingdom’s entrepreneurship and small-business sector.
The financing will be provided through digital products and solutions that comply with Islamic Sharia principles. The programme is designed to serve businesses across different economic sectors rather than being limited to a particular industry.
Under the agreement, eligible businesses can access short, medium, and long-term financing facilities, with financing periods extending up to 10 years. The facilities are intended to cover a range of business needs, including working capital and operating expenses, as well as purchases of assets and equipment.
The financing programme will also cover point-of-sale receivables, contracts, and projects. E-commerce businesses are included, while other available solutions include invoice and accounts-receivable financing, business credit cards, supply-chain finance, and trade finance through guarantees and letters of credit.
The agreement brings together Monsha’at’s role in supporting the Kingdom’s micro, small, and medium-sized enterprise sector with STC Bank’s digital banking and financing services. STC Bank already offers financing products for businesses, including capital expenditure financing for SMEs.
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For businesses, the significance of the agreement is the range of financing purposes covered by the programmed. Companies can seek funding not only for day-to-day liquidity needs but also for equipment, projects, receivables, and other business activities, depending on eligibility and the specific financing product.
The authority also linked the initiative to the broader objectives of supporting business growth and sustainability and increasing the sector’s contribution to the national economy under Saudi Vision 2030.
The SAR 5 billion figure represents the size of the financing portfolio covered by the agreement, meaning it should not be interpreted as SAR 5 billion being immediately distributed to businesses. The actual financing available to individual companies will depend on the relevant product, eligibility requirements, and credit assessment.
