What is the Kafalah Program?

The Kafalah program is a financing guarantee program that provides guarantees to financial institutions (such as banks) to cover part of the lending risks for small and medium enterprises. The program acts as an intermediary between enterprises and financing entities, guaranteeing repayment of part of the loan in case the enterprise defaults, encouraging banks to provide larger and easier financing. The program covers financing up to 15 million Saudi riyals for medium enterprises and targets various sectors such as industry, commerce, and services.

The program is managed by a specialized authority affiliated with the Saudi Industrial Development Fund and cooperates with more than 20 banks and financial institutions in the Kingdom, such as Arab National Bank, Saudi Investment Bank, and Riyadh Bank. The program also received the “Best Institution in Sustainable Finance at the Kingdom Level” award from The Digital Banker magazine in 2025, in recognition of its role in sustainable financing.

Objectives of the Kafalah Program

The program aims to enhance the growth of small and medium enterprises through:

• Facilitating access to financing at lower costs and better terms.
• Encouraging financial institutions to increase lending to emerging and small enterprises, reducing lending risks.
• Supporting the national economy by strengthening local enterprises and creating new job opportunities.
• Promoting sustainable financing, especially for enterprises in strategic sectors such as industry and technology.

Since its launch, the program has contributed to financing more than $26.6 billion (approximately 100 billion Saudi riyals) until 2024, and continued to grow during 2025.

Products and Services in the Kafalah Program

The program offers a range of financing products designed to meet the needs of different enterprises. Here is a table summarizing the financing limits according to enterprise size:

Enterprise Size	Maximum Financing (Saudi Riyals)	Guarantee Percentage (%)
Micro	2,500,000	Up to 80%
Small	5,000,000	Up to 80%
Medium	15,000,000	Up to 80%

Products include:

• Working Capital Financing Guarantee : To cover daily operational needs such as inventory and salaries.
• Investment Financing Guarantee : For purchasing fixed assets or expanding projects.
• Tourism Project Financing Guarantee : In cooperation with the Tourism Development Fund, covering up to 15 million riyals.
• Export Financing Guarantee : In cooperation with the Saudi Export-Import Bank, to support exporting enterprises.

Kafalah Program Requirements

To benefit from the program, the enterprise must meet the following conditions:

• Be registered in the Saudi Commercial Register and classified as a small or medium enterprise according to the definition of the Small and Medium Enterprises Authority (Monsha’at).
• The enterprise must be Saudi-owned by at least 51%, or according to sector requirements.
• No previous financial defaults, and provide a feasibility study for the project if required.
• Obtain approval from a financial entity participating in the program.

How to Apply for the Kafalah Program

The application process for the Kafalah program is easy and straightforward, and can be completed electronically through simple steps. Applications are submitted through the program’s official website or through partner banks, with the necessity of providing required documents to ensure quick review and approval. Below are the detailed application steps:

1. Visit the Website : Go to kafalah.gov.sa and choose “Submit Guarantee Application”.
2. Registration : Create an account using the commercial registration number and ID number.
3. Fill the Form : Enter enterprise details, type of financing required, and its value.
4. Submit Documents : Upload commercial registration, financial statements, and feasibility study.
5. Review : The application is reviewed within a few weeks, then the guarantee is issued if approved.

Applications can also be submitted through partner banks such as Arab National Bank or Saudi Investment Bank.

Conclusion

The Kafalah program provides a golden opportunity for small and medium enterprises to obtain the necessary financing to develop their businesses. Through the guarantees provided by the program, the process of obtaining loans becomes easier and more flexible. If your enterprise needs financing, applying to the Kafalah program is an important step toward achieving your commercial goals and business growth.