Development of digital funding solutions with the Ministry of Finance

Thursday-2019-04-25

As part of the work of the first session of the Financial Sector Conference, under the generous sponsorship of the Custodian of the Two Holy Mosques, the Social Development Bank signed a memorandum of cooperation with the Ministry of Finance today, 20.8-1440H, 24.4-2019, in Riyadh City, to find funding solutions. The Bank for Social Development signed a memorandum of cooperation with the Ministry of Finance today, 20.8.1440H, 24.4-2019, in Riyadh City, to find immediate digital financing solutions to support business leaders in the small and emerging supply sector to enable them to win and implement government competitions through a credit platform.

The Bank ' s memorandum of cooperation was signed by the Director-General of the Bank for Social Development, Ibrahim Bin Hamad Al-Rashid, and by the Ministry of Finance, the Adviser to the Director-General of Public Debt Management, Professor Fahd Bin Abdullah Al-Saif, to contribute actively to the digital transformation of the Government ' s labour system with the objective of seeing the Kingdom ' s 2030 digital platforms, which provides a substantial opportunity for small and emerging finances, and local finance.

In this regard, H.E. Minister of Labour and Social Development, President of the Board of Directors of the Bank for Social Development, Engineer Ahmed Bin Suleiman Al-Rajjay, confirmed that this note is characterized by an innovative package of business solutions for the emerging and small enterprise group to benefit from opportunities generated by government procurement in a credit platform.

His Excellency the Forest Engineer indicates that the Memorandum of Cooperation serves strategic objectives in parallel with the objectives of the Saudi Vision 2030 m and the National Industry Development and Logistics Services Programme, among others, to enhance the private sector ' s contribution to local content, to increase the contribution of small and emerging companies to GDP and to increase resettlement in those projects, stating that the Bank will provide a range of qualitative financing solutions to enable emerging and small-scale enterprises to benefit from opportunities arising from this note, where procurement will help reduce government expenditure.

For his part, the Director-General of the Bank for Social Development, Professor Ibrahim Bin Hamad Al-Rashid, confirmed that the memorandum had been signed to build a strategic relationship between the Bank and the Ministry of Finance to support the objectives of both sides, and to help small enterprises to win and implement government competitions offered through a credit platform, and to provide any other services that would achieve the objectives of the parties, stressing that the product would be exceptional and innovative from the Bank and would have a high impact of providing rapid liquidity to small and medium-sized enterprises of 12 billion enterprises annually.
The petitioner indicated that the memorandum of cooperation had the advantage of providing a package of possibilities for financing products and non-financial services for the emerging and small-scale enterprise group to benefit from opportunities in projects through a credit platform.

On the other hand, as part of the work of the Financial Sector Conference, the Bank for Social Development, in collaboration with its partners, will announce the provision of several specialized financing products within a financial allocation of over 1 billion rials, with the construction of a 200-strong finance product in cooperation with a city authority to enable industry through the prefabricated plant package with a financial portfolio of 650 million rials to finance and support 300 businesses, as well as the development of a financial support package.

It should be noted that the Bank for Social Development has benefited more than 2.6 million citizens and citizens from the various services and products of the Bank since its founding in 1391. The funding volume of the Bank has surpassed SAR 105 billion in both social finance and project finance sections. The Greater and Broader Economic Empowerment Portal is a gateway at the country level. www.sdb.gov.sa