Kafalah
Kafalah is the Saudi Arabian government's flagship SME financing guarantee program, issuing 80-95% credit guarantees through 69+ partner banks to micro, small, and medium enterprises that lack collateral, aligned with Vision 2030 SME growth targets.
- Company typePrivate
- Founded2001
- HeadquartersRiyadh, Saudi Arabia
- Headcount101–250
- GTM typeB2B
- OfferingServices
What Kafalah does
Kafalah is the Saudi Arabian government's flagship SME financing guarantee program, established by Royal Order in 2001 and formally launched under Minister of Finance Decision No. 1166 in 2005. It is managed by the SME Bank (established February 2021) within the National Development Fund and operates as a non-profit developmental initiative aligned with Saudi Vision 2030's goal of raising SME contribution to GDP from 20% to 35%. The program issues guarantees covering 80-95% of financing risk on loans made by 69+ partner banks and financing companies to micro, small, and medium enterprises that are economically viable but cannot meet conventional collateral requirements. By the most recent disclosures, Kafalah has supported over 26,500 cumulative SMEs, holds SAR 30 billion in active guarantees, and contributed SAR 3.6 billion in value to Saudi GDP with claims of 1.7 million+ jobs enabled.
The product portfolio spans a general Kafalah Regular product (80% coverage, all sectors), a Working Capital product (90%, up to SAR 15M for medium enterprises), a Start-Up Enterprises product (for businesses under 3 years old), and seven sector-specific guarantees covering Export, Technology, Consulting, Culture, Tourism, Entertainment, and Awqaf/Non-Profit sectors, each with up to 90-95% coverage. Distribution is exclusively channel-based: SMEs apply through any cooperating bank or financing company, or via the TamweelGate electronic portal supervised by SME Bank. The program's technology layer includes TamweelGate (a marketplace platform), a Knowledge Base system, and a behavioral credit classification system developed with SIMAH in 2023 to automate guarantee decisions and predict default probability. The 'Moahel' tool offers SMEs a probability-of-approval assessment, while the 'Nabaa Service' provides broader financing support.
The business model is non-profit and government-funded; Kafalah charges nominal annual administrative fees to financing entities (not to SMEs) for application review and follow-up services. The program does not target profit and operates as a state-mandated policy instrument rather than a commercial entity. Go-to-market is partnership-driven through 13+ partner banks (including NCB, Al Rajhi, Riyad Bank, Alinma, SABB, AlJazira, Bank AlBilad, Saudi Investment Bank, Saudi French Bank) and 20+ partner financing companies, supplemented by strategic cooperation agreements with sectoral authorities (Tourism Development Fund, Cultural Development Fund, General Entertainment Authority, SABIC) and universities. Customer segments are primarily horizontal by enterprise size (micro 1-5 employees, small 6-49, medium 50-249) with specialized products for startups, women entrepreneurs, and SMEs in 'promising regions' outside major cities.
Kafalah firmographics
Firmographics- Name
- Kafalah
- Legal name
- Kafalah SME Financing Guarantee Program (برنامج كفالة لتمويل المنشآت الصغيرة والمتوسطة)
- Website
- https://kafalah.gov.sa
- Company type
- Private
- Founded year
- 2001
- Operating status
- Operating
- Headcount range
- 101–250 employees
- Short description
- Kafalah is the Saudi Arabian government's flagship SME financing guarantee program, issuing 80-95% credit guarantees through 69+ partner banks to micro, small, and medium enterprises that lack collateral, aligned with Vision 2030 SME growth targets.
- Ownership category
- akta.pro rank
Kafalah industry classification
Industry- Product category
- SME Financing Guarantee Services
- NAICS
- Depository Credit Intermediation (5221)
- SIC
- Federal & Federally-Sponsored Credit Agencies (6111)
- akta.pro primary industry
- SBA/Government-Backed & Development Finance Loans (FSAKAGAI)
- akta.pro secondary industry
- Development Finance, Guarantees & Blended Finance Programs (BPADABAM)
Keywords
Where Kafalah is headquartered
LocationHeadquarters
- HQ city
- Riyadh
- HQ country
- Saudi Arabia
- HQ region
- Middle East
Offices1 record
Markets served
Kafalah business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Others
Revenue model
- Annual Administrative Fees: Kafalah charges nominal annual administrative fees for studying financing guarantee applications and follow-up services. These fees are paid by the financing entity, not the SME borrower directly.
- Government Developmental Funding: As a non-profit government developmental program, Kafalah is funded by government budgets and does not aim to generate profit.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Multi-year contract | Regular Kafalah Product - 80% coverage for all sectors |
| Other | Multi-year contract | Export Sector Product - Up to 90% coverage |
| Other | Multi-year contract | Working Capital Product - Up to 90% coverage |
| Other | Multi-year contract | Awqaf & Non-Profit Product - Up to 95% coverage |
| Other | Multi-year contract | Technical/IT Product - Up to 90% coverage |
| Other | Multi-year contract | Start-Up Enterprises Product - For businesses up to 3 years old |
Go-to-market motion1 record
Distribution channels4 records
Marketing channels6 records
Kafalah product offering
Product offeringCore offering
Kafalah is a Saudi government financing guarantee program that provides credit guarantees on loans made by banks and financing companies to micro, small, and medium enterprises, covering up to 80-95% of the financing value depending on the product. The program works through over 69 cooperating financing entities and the TamweelGate electronic portal, and also offers sector-specific guarantees for export, technology, tourism, culture, entertainment, and other strategic sectors aligned with Vision 2030.
Product overview
Kafalah is a government SME Financing Guarantee Program that offers a portfolio of financing guarantee products designed to help micro, small, and medium enterprises obtain necessary financing. The core offerings include the Kafalah Regular Product (general coverage for all sectors at 80%), Working Capital Product (90% coverage), and Start-Up Enterprises Product (for businesses under 3 years old). Sector-specific products provide specialized guarantees for Technology, Export, Consulting, Culture, Tourism, Entertainment, and Awqaf & Non-Profit sectors with coverage ratios of 90-95%. These products are delivered through the TamweelGate electronic financing portal and supported by the Moahel approval probability service. The program collaborates with over 69 financing entities including banks and finance companies.
Differentiator
Problem solved
Functional benefit
Brands
- Moahel: Probability of Approval evaluation initiative - a tool to assess likelihood of financing approval
- TamweelGate
- Nabaa Service
Products and services
- Kafalah Regular (Regular Kafalah Product) A general-purpose financing guarantee product serving all sectors and business activities not covered by other Kafalah initiatives, providing up to 80% coverage of the financing value to micro, small, and medium enterprises.
- Start-Up Enterprises (Start-Ups Product) A financing guarantee product designed for enterprises within their first 3 years of operation from commercial register issuance, supporting early-stage businesses through partner banks and financing companies.
- Working Capital (Working Capital Product) A financing guarantee product supporting SME working capital financing, with maximum guarantee values of up to SAR 2.5 million (Micro), SAR 5 million (Small), and SAR 15 million (Medium), and coverage of up to 90% of funding value.
- Export Sector (Export Sector Product) A sector-specific financing guarantee product for SMEs in the local and international export and import sectors, offering up to SAR 2.5/5/15 million coverage and up to 90% of financing value.
- Technology Sector (Technical Product) A financing guarantee product dedicated to IT and technical-sector SMEs, providing up to 90% coverage of the funding value.
- Consultant Sector (Consultant Sector Product) A sector-specific financing guarantee product providing coverage for SMEs in the local consulting sector across various consulting disciplines.
- Culture Sector (Cultural Product) A sector-specific financing guarantee product supporting SMEs in cultural sectors and their supporting sectors, classified according to the Cultural Development Fund.
- Entertainment Sector (Entertainment Product) A sector-specific financing guarantee product supporting SMEs in different entertainment sectors and their supporting sectors, classified by the General Entertainment Authority.
- Tourism Sector (Tourism Product) A sector-specific financing guarantee product supporting SMEs in different tourism sectors, classified by the Tourism Development Fund, with maximum warranty value up to SAR 15 million for medium enterprises.
- Awqaf & Non-Profit Sectors (Awqaf & Non-Profit Product) A sector-specific financing guarantee product supporting SMEs in Awqaf and non-profit sectors with maximum guarantee values up to SAR 5 million for micro/small enterprises and SAR 15 million for medium enterprises, with up to 95% coverage.
- TamweelGate Financing Portal An electronic platform supervised by the SME Bank that connects financiers from government and private sectors with SMEs seeking financing, enabling SMEs to choose suitable financing offers and manage the application cycle.
- Moahel (Probability of Approval) A digital initiative providing a probability-of-approval assessment for Kafalah financing applications, helping SMEs gauge their likelihood of obtaining a guarantee before applying.
Quantifiable outcome
- SMEs supported show 20% growth rate in employees 6 months after obtaining Kafalah-guaranteed financing; male Saudi employment increases 7%, female Saudi employment increases 9% after 1 year
- +4 more outcomes
Companies that use Kafalah
Customer profileNamed customers10 records
Segments7 records
Ideal customer profiles2 records
Kafalah technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
Kafalah partnerships and signals
Strategic signalPartnerships
26 partnerships are on record, tiered core and flagship.
- SIMAH - Saudi Credit Information Company (سمة)coreAgreement to develop credit behavior classification system for automated guarantee decision-making, risk prediction, and enhanced SME financing access through innovative value-added services
- General Authority of Awqaf (الهيئة العامة للأوقاف)coreCooperation agreement to support and develop SMEs operating in the Awqaf and non-profit sector, enhance their financial sustainability and credit capabilities through financing guarantees
- Saudi Arabian Basic Industries Corporation (SABIC) (سابك)coreCooperation agreement signed to facilitate financing for entrepreneurial projects and support SME sector through SABIC's 'Nasand' initiative launched January 2018
- Tourism Development Fund (صندوق التنمية السياحي)coreCooperation agreement to support and develop SME establishments related to tourism activities and provide necessary needs for their development
- Cultural Development Fund (صندوق التنمية الثقافي)coreCooperation agreement to stimulate target cultural sectors and supporting sectors, create sustainable investment opportunities, and develop the cultural sector
- General Entertainment Authority (الهيئة العامة للترفيه)corePartnership to support entertainment sector SMEs through Kafalah guarantee products
- Ministry of Industry and Mineral Resources (وزارة الثروة والصناعة المعدنية)coreCooperation to develop the mining sector, diversify national economy, and attract local and foreign investors
- King Saud University - Entrepreneurship Institute (جامعة الملك سعود)corePartnership to develop a positive entrepreneurial environment and enable young Saudi entrepreneurs to obtain necessary financing through advance guarantees
- King Faisal University (جامعة الملك فيصل)coreInnovation centers partnership to develop entrepreneurial ecosystem and support SME financing access
- Al-Jouf University (جامعة الجوف)coreInnovation centers partnership to support entrepreneurial development in Northern regions
- Rukan Al-Amal Company (شركة ركن العمل)coreBusiness incubators and accelerators company partnering to support entrepreneurial ventures through Kafalah guarantees
- National Industrial Development and Logistics Services Program (ندلب)coreMoU to support and develop industrial and logistics sectors by providing necessary guarantees to financiers and increasing financing ratios
- Ministry of Municipal and Housing Affairs (وزارة الشؤون البلدية والقروية والإسكان)coreMoU to support and develop real estate developer sector and increase its contribution to GDP through enhanced financing
- Ministry of Sports (وزارة الرياضة)coreMoU to develop and enhance the sports sector within Vision 2030 transformation and support target sports sectors
- Saudi American Express (أمريكان اكسبريس السعودية)coreCooperation agreement to support SME financing and services
- SME Bank (بنك المنشآت الصغيرة والمتوسطة)flagshipStrategic partnership with SME Bank established by Council of Ministers Decision No. 376. Kafalah aligns its identity with SME Bank strategy and National Development Fund. SME Bank supervises the TamweelGate financing portal
- National Commercial Bank (البنك الأهلي)coreMajor Saudi commercial bank partnering with Kafalah to provide SME financing guarantees
- Saudi French Bank (البنك الفرنسي السعودي)coreFrench-Saudi banking institution providing SME financing with Kafalah guarantees
- Riyadh Bank (بنك الرياض)coreMajor Riyadh-based bank offering SME financing with Kafalah guarantee support
- Al Rajhi Bank (مصرف الراجحي)coreLeading Islamic bank providing SME financing with Kafalah guarantee programs
- Alinma Bank (مصرف الإنماء)coreSaudi Islamic bank cooperating with Kafalah for SME financing guarantees
- Saudi British Bank (SABB) (البنك الأول ساب)coreBritish-Saudi bank providing SME financing through Kafalah guarantee programs
- Saudi Investment Bank (البنك السعودي للإستثمار)coreSaudi investment bank offering SME financing with Kafalah guarantees
- Saudi Finance Company (الشركة السعودية للتمويل)coreMajor Saudi financing company providing SME loans with Kafalah guarantees
- Saudi Arabian Oil Company (أرامكو السعودية)coreStrategic partner providing support for SME protection during economic challenges through Kafalah programs
- Saudi Central Bank (SAMA) (البنك المركزي السعودي)flagshipPartnership for Guaranteed Financing Program covering 95% of financing value. Extended until March 2023 to support SMEs during and after pandemic, providing 13.3 billion SAR in guarantees
Scale indicators11 records
Recent moves8 records
Expansion highlights6 records
Kafalah competitors and assessment
Company assessmentBroad incumbents
- U.S. Small Business Administration (SBA): The U.S. federal agency that runs government-backed SME loan guarantee programs (e.g., 7(a), 504, SBA Express). It is the closest functional analog to Kafalah, providing partial credit guarantees via partner banks to address collateral gaps for SMEs.
- International Finance Corporation (IFC): World Bank Group member providing SME financing guarantees and advisory globally. Kafalah won the IFC SME Finance Forum "Best SME Funder" award for three consecutive years, signaling direct functional comparability in SME guarantee design and execution.
- European Investment Fund (EIF): EU-level institution providing SME credit guarantees and securitization across Europe through partner banks and funds. Comparable as a supranational guarantee platform, but with broader geographic scope than Kafalah.
Regional players
- UAE Khalifa Fund: UAE federal initiative providing financing and credit support to Emirati entrepreneurs and SMEs. Comparable to Kafalah in mandate (national SME development) and Gulf-region context, though it offers direct financing rather than pure guarantees.
- Egyptian Credit Guarantee Company (ECGC): Egyptian credit guarantee company supporting SME access to financing through partner banks, often cited alongside Kafalah within the Arab Guarantee Programs Network. Comparable in mandate and Arab-region context.
- Malaysia Credit Guarantee Corporation (CGC): Malaysian government-linked company providing credit guarantees to SMEs through partner financial institutions. Operates a comparable partner-bank guarantee model in an emerging-market context similar to Saudi Arabia.
Direct peers
- British Business Bank: UK government-backed economic development bank that provides loan guarantees and growth capital to SMEs through partner banks and alternative lenders. Comparable to Kafalah in mandate (addressing SME finance gap) and channel-partner GTM.
- Korea Credit Guarantee Fund (KODIT): South Korea's primary government-backed credit guarantee institution, providing credit guarantees and technology guarantees to SMEs and startups. Operates with similar coverage ratios and partner-bank distribution as Kafalah and is widely cited as a best-in-class peer.
- Saudi Industrial Development Fund (SIDF): Saudi government development finance institution historically managing Kafalah before 2021; provides loans and credit support to industrial SMEs. Directly comparable as a Saudi sovereign development finance institution serving similar segments.
- National Development Fund (Saudi Arabia): Saudi umbrella institution overseeing development banks including SME Bank and SIDF. Kafalah operates under SME Bank, which sits within NDF; comparable as the parent ecosystem coordinating sovereign development finance for SMEs.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
Kafalah social profiles
Digital presenceKafalah financial estimates
Financial estimateRevenue estimate
Valuation estimate
Kafalah leadership team
Management profileNumber of profiles
Profiles4 records
Kafalah funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Kafalah M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Kafalah
What does Kafalah do?
Kafalah is a Saudi government financing guarantee program that provides credit guarantees on loans made by banks and financing companies to micro, small, and medium enterprises, covering up to 80-95% of the financing value depending on the product. The program works through over 69 cooperating financing entities and the TamweelGate electronic portal, and also offers sector-specific guarantees for export, technology, tourism, culture, entertainment, and other strategic sectors aligned with Vision 2030.
Is Kafalah a public or private company?
Kafalah is a private company. It is classified as state government owned and is currently operating.
When was Kafalah founded?
Kafalah was founded in 2001. It employs 101 to 250 people.
Where is Kafalah based?
Kafalah is headquartered in Riyadh, Saudi Arabia, in the Middle East region.
How does Kafalah make money?
Two revenue lines are on record. Annual Administrative Fees are the primary driver. The others are government Developmental Funding.
Who are Kafalah's main competitors?
Broad incumbents on record are U.S. Small Business Administration (SBA), International Finance Corporation (IFC) and European Investment Fund (EIF). Regional players are UAE Khalifa Fund, Egyptian Credit Guarantee Company (ECGC) and Malaysia Credit Guarantee Corporation (CGC). Direct peers are British Business Bank, Korea Credit Guarantee Fund (KODIT), Saudi Industrial Development Fund (SIDF) and National Development Fund (Saudi Arabia).
Does Kafalah have an API?
No public API is recorded for Kafalah.
What industry is Kafalah in?
Kafalah's product category is SME Financing Guarantee Services. Its primary akta.pro industry code is FSAKAGAI, SBA/Government-Backed & Development Finance Loans, with a secondary code of BPADABAM, Development Finance, Guarantees & Blended Finance Programs. Its NAICS code is 5221 and its SIC code is 6111.