Kafala Program

We are one of the largest Saudi banks in terms of the value of Kafala guarantees we provide to MSME clients, just like you. Our Kafala program allows MSMEs to assess the finance they need to develop and grow their business.

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What is the Kafala Program?

The Kafala program is designed to help MSMEs flourish by providing them with the necessary finances to expand their operations.

Program Objectives

Kafala Purposes

Funded Facilities

Funded Facilities:

1) Working Capital finance (short-term - less than a year) a. Bill proceeds financing b. Operating expenses financing 2) CAPEX financing (medium term - from 1 to 3 years) a. Financing the purchase of machinery and equipment b. Financing the opening, equipping, and expansion of new branches

Non-Funded Facilities

Non-Funded Facilities:

1) Letters of Guarantee (Bid Bond/Final/Financial/Advance Payment) 2) Letters of Credit (Sight/Deferred)

Kafala Financing Process

Apply online to SNB with the required documents.

We process your request.

After approving the requested finance, we apply to SIDF for the issuance of a Kafala guarantee and request a written approval from you accepting the Kafala program.

After evaluating your request and verifying that it adheres to the program policies, the SIDF will issue or refuse the required Kafala to us.

You will sign the credit-line agreement and be given the finance.

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Things you should know

What you need to qualify

Required documents

Your business must possess a balance sheet

Your business must be under a legal entity (sole proprietor, partnership company, limited liability company etc.)

You must have a clean credit history with SNB or any other bank.

Your business and its feasibility study must be economically and commercially viable.

The total sales/revenue of the business must be under SAR 200 million.

The activities covered by the Kafala Program include the following:

Industry of all kinds

Activities that serve the agricultural sector
Commercial activities
Education
Oil, gas, and mineral wealth
Construction and Contracting
Transportation
Service activities
Medical facilities (private clinics - private hospitals - medical centers)

*(All activities with annual revenues do not exceed SAR 200 million)

Non-eligible business activities for the Kafala program

Activities that are not under MSMEs
Activities owned by the government
Speculation activities (buying and selling of currencies or shares, real estate, and financing projects)