In an important step to support the vital business sector in the Kingdom, the Eastern Province Chamber, represented by the Small and Medium Enterprises Center, organized a specialized meeting entitled “Financing Solutions for Small and Medium Enterprises,” which witnessed broad participation from experts, entrepreneurs and interested parties, with the aim of exploring new horizons to facilitate this pivotal sector’s access to the capital necessary for growth and expansion.
General context: Small and medium enterprises at the heart of Vision 2030
This meeting comes at a time when the Kingdom of Saudi Arabia places paramount importance on the small and medium-sized enterprises (SMEs) sector, recognizing it as a key driver of economic development and a cornerstone for achieving the goals of Vision 2030. The Vision aims to increase the sector's contribution to GDP from 20% to 35% by 2030, which necessitates a supportive and stimulating environment, foremost among which is facilitating access to finance. Several government entities, such as the General Authority for Small and Medium Enterprises (Monsha'at) and the Financial Sector Development Program, are working to launch various initiatives and programs to bridge the financing gap facing entrepreneurs.
Topics of discussion: From traditional finance to financial technology
During the meeting, a wide range of important topics covering the current and future financial landscape were highlighted. Speakers discussed the reality of financing solutions in the Kingdom, focusing on innovative alternatives to traditional bank financing, such as crowdfunding platforms and venture capital. Discussions included the role of financial technology (FinTech) and big data in accelerating credit decision-making processes, thus reducing the time and effort required to secure funding. The importance of venture capital as a strategic option for emerging and ambitious companies seeking rapid growth and expansion into new markets was also reviewed.
Importance and expected impact: Boosting economic growth and creating opportunities
The participating experts emphasized that flexibility in providing financing solutions is key to empowering the business sector. Instead of one-size-fits-all solutions, businesses need financing products tailored to their cash flows and business cycles. They pointed out that providing such products not only ensures the continued growth of businesses and helps them overcome liquidity challenges, but also serves as an effective tool for increasing sales and seizing expansion opportunities. Enabling this sector to access the necessary financing has broad economic and social impacts. Locally, it contributes to creating more job opportunities for Saudi youth, stimulating innovation, and enhancing market competitiveness. Nationally, the flourishing of this sector supports efforts to diversify the Kingdom's economic base, thus strengthening the resilience of the Saudi economy in the face of global fluctuations.
