Important Facts of the News
- Event held: Biban Forum 2025 in Riyadh
- Speaker: Bader Alradhan, Business Sector CEO at SME Bank
- SMEs represent 99% of enterprises in Saudi Arabia
- Topic discussed: Innovative funding models for SMEs
- SME Bank works with commercial and nonbank finance models
- Licensed nonbank finance companies receive loans from SME Bank
- Key challenges faced: Limited access to finance by SMEs
Empowering Saudi Arabia’s SME Sector
The Biban Forum 2025 in Riyadh featured a key discussion on strategies to financially empower small and medium enterprises (SMEs) in Saudi Arabia. Bader Alradhan, Business Sector Chief Executive Officer at the SME Bank, addressed the challenges and opportunities surrounding access to finance for SMEs during a panel session titled “Financing Expansion: Empowering SMEs Through Innovative Funding Models.”
SMEs: Driving Force of Saudi Economy
Alradhan highlighted the significant role played by SMEs in the national economy, pointing out that nearly 99% of all registered enterprises in the Kingdom fall under this category. He underlined their notable contributions in areas including gross domestic product growth, job creation, and technological advancement.
Flexible Financing Models
The SME Bank, Alradhan explained, adopts various financing approaches to ensure greater support for small businesses. These include models tailored for both commercial banks and nonbank finance entities, which are licensed by the Saudi Central Bank. By extending loans to these nonbank finance firms, SME Bank enhances the liquidity available to small and medium enterprises across the Kingdom.
The discussion underscored the bank’s ongoing efforts to improve accessibility to funding and ensure the long-term resilience of the SME sector, which continues to play an essential role in shaping Saudi Arabia’s economic future.
Outlook
With innovative financial solutions being explored at platforms such as Biban Forum, the SME sector in Saudi Arabia stands to gain enhanced support, helping drive broader development goals and empower more entrepreneurs nationwide.