Monsha’at & STC Bank Sign $1.33 Billion SME Financing Agreement

Saudi Arabia’s Small and Medium Enterprises General Authority, Monsha’at, and STC Bank have signed a cooperation agreement worth up to $1.33 billion to expand access to digital financing for small and medium-sized enterprises.

Signed during Money20/20 in Riyadh, the agreement covers a financing portfolio of up to SAR 5 billion, with Sharia-compliant facilities available for terms of up to 10 years.

The programme includes financing for working capital and operational expenses, asset and equipment purchases, point-of-sale receivables, contracts and projects, and e-commerce businesses. It also covers invoice and accounts receivable financing.

SMEs will additionally be able to access business credit cards, supply chain financing and trade finance products including guarantees and letters of credit.

The agreement combines Monsha’at’s SME support mandate with STC Bank’s digital banking infrastructure, covering short-, medium- and long-term financing for both cash and non-cash business needs.

The range of facilities is intended to address different stages of the SME financing cycle, from day-to-day operating costs to longer-term investment, receivables management and trade transactions.