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

Non-Funded Facilities

Non-Funded Facilities:

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

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

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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SME Financing

Last update: 06/20/2025

Short Term Islamic Credit Facility Program Examples

Type of Financing	Finance Amount	Finance Tenure	Method of payment	APR	Monthly Instalment
Short term	 500,000	3 Months	In monthly installments	5.00%	 168,057.48
Short term	 500,000	6 Months	In monthly installments	6.00%	 84,797.73
Short term	 500,000	9 Months	In monthly installments	8.00%	 57,432.81

The Annual Percentage Rate (APR) is the ratio that shows the cost of financing to the financial organization as an annual percentage of financing. This percentage is usually higher than the nominal commission or what is known as the flat rate because the calculation of its value includes the value of administrative fees, expenses and insurance throughout the financing period. For this reason, it gives a clearer picture of the real percentage of financing than the nominal commission, which includes the profit margin only.
The above table and its numbers are an illustrative example only and represent how to calculate the annual percentage rate, which depends on five basic factors (profit margin, financing amount, insurance rate, financing period, car price)
The administrative fee is 1% of the financing amount
Terms and conditions apply