Investment: Monsha’at & STC Bank sign USD 1.33B SME financing agreement
Monsha’at, Saudi Arabia’s Small and Medium Enterprises General Authority, has signed a cooperation agreement with STC Bank to expand SMEs’ access to digital, Sharia‑compliant financing products. The partnership establishes a financing portfolio valued at up to USD 1.33 billion (SAR 5 billion) to support a wide range of SME needs.
The agreement is structured to provide Sharia‑compliant facilities across working capital, equipment purchases, receivables and trade finance, with tenor options extending up to 10 years. It aims to support entrepreneurship and broaden access to digital banking and financing solutions by combining Monsha’at’s role in the SME ecosystem with STC Bank’s digital offering.
The program covers short-, medium- and long‑term financing for both cash and non‑cash needs, including financing for day‑to‑day operations, asset and equipment purchases, financing against point‑of‑sale receivables, funding linked to contracts and projects, and services for e‑commerce businesses. It also includes invoice and accounts receivable financing, business credit cards, supply chain financing, and trade finance tools such as guarantees and letters of credit.
Implementation of the USD 1.33 billion portfolio is intended to increase the financing options available to Saudi SMEs across different stages of their operations—addressing immediate working capital needs, supporting investment through asset financing, and improving liquidity through receivables and invoice financing. The rollout will determine how effectively these products translate into greater access to capital for SMEs.
