Small and Medium Enterprise Bank

What Small and Medium Enterprise Bank does

Small and Medium Enterprise Bank (SME Bank) is a Saudi Arabian government development bank established by Cabinet Decision No. (376) on February 16, 2021, operating under Royal Decree No. (M/46) issued November 2, 2022, and wholly owned through the National Development Fund. The institution was created to close the SME financing gap and to increase the contribution of financial institutions to innovative financing solutions, in line with Saudi Vision 2030 objectives. It serves three SME tiers — micro (revenues 0-3,000,000 SAR), small (3,000,000-40,000,000 SAR), and medium (40,000,000-200,000,000 SAR) — which together represent approximately 1.8 million enterprises in the Kingdom.

SME Bank operates a digital-first model without a traditional branch network, anchored by the Funding Gate platform — a unified portal connecting SMEs with 50+ financing partners including commercial banks (Al Rajhi, Arab National, Saudi Investment, Saudi French, Bank AlBilad), non-bank financial institutions (AlAam, AlTaiseer, AlRaedah, AlOula, Towseelat, Yanal), fintech firms, crowdfunding platforms (Raqamyah, Forus, Manafa, Tameed, Lendo), and government development funds. Its financing programs operate on three structures: a Co-financing Model where portfolios are jointly funded and managed by partner banks (up to SAR 15M, up to 5 years), an NBFI Program providing liquidity to non-bank financing companies (up to SAR 15M, up to 3 years), and an Agency Model deploying funds through crowdfunding platforms (up to SAR 3M, up to 2 years). A sector-specific Education Sector Financing program was launched in early 2025. The group also encompasses the Kafalah guarantee program and the Saudi Venture Capital Company (SVC).

Monetization is indirect: SME Bank is not a fee/revenue-driven commercial lender but rather deploys government-backed capital through partner institutions. Since 2020, SME Bank has channeled approximately SAR 137 billion in financing through its group entities and over SAR 36 billion specifically through the Funding Gate platform, representing a 9.63% share of total SME financing in Saudi Arabia — a market growing at 6.83% annually. Distribution is supported by support centers in Riyadh, Jeddah, Khobar, and Medina operated jointly with Monsha'at, alongside strategic positioning at major national entrepreneurship forums (Biban 2025). The bank is governed by a Board chaired by Yousef bin Abdullah Al-Benyan and led operationally by CEO Ibrahim bin Hamad Al-Rashid.

Name

Small and Medium Enterprise Bank

Legal name

Small and Medium Enterprise Bank (SME Bank)

Website

https://smebank.gov.sa

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

251–500 employees

Short description

Small and Medium Enterprise Bank (SME Bank) is a Saudi government development bank, established 2021 under the National Development Fund, that operates a digital-first Funding Gate platform connecting Saudi SMEs with 50+ financing partners across banks, NBFIs, fintechs, and crowdfunding platforms to close the SME financing gap.

Ownership category

akta.pro rank

Product category

SME Development Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221), Other Financial Vehicles (525990)

SIC

State Commercial Banks (6022), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

General SME & Middle-Market Commercial Banking (FSABABAA)

akta.pro secondary industries

SME Term Loans & Growth Capital (FSAKAGAB), SME Lending Platforms & Embedded SME Credit (FSAKAGAJ), SME Lending & Working Capital Platforms (FSAGAJAA), Managed Account / SMA Multi-Manager Platforms (FSANAGAL)

Keywords

• SME development financing
• Government lending programs
• Venture capital funding
• Credit guarantee services
• Co-financing partnerships

Headquarters

HQ city

Riyadh

HQ country

Saudi Arabia

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Development Financing: As a development bank under the National Development Fund, SME Bank provides financing to SMEs through various models including co-financing with banks, partnerships with NBFIs, and agency financing through crowdfunding platforms. The bank works to increase total loan portfolios and bridge the financing gap for SMEs.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels3 records

Core offering

SME Bank is a Saudi government development bank that provides financing to micro, small, and medium enterprises through the Funding Gate digital platform and three principal programs: a Co-financing Model with partner banks (up to SAR 15M, up to 5 years), an NBFI Program with non-bank financing companies (up to SAR 15M, up to 3 years), and an Agency Model via crowdfunding platforms (up to SAR 3M, up to 2 years), plus sector-specific offerings such as Education Sector Financing. The bank is wholly owned by the Saudi government through the National Development Fund and operates alongside affiliates Kafalah (loan guarantees) and Saudi Venture Capital Company (SVC).

Product overview

Small and Medium Enterprise Bank (SME Bank) is a government development bank operating as part of the National Development Fund, established by Cabinet Decree No. 376 on 04/07/1442H (corresponding to 16/02/2021). The bank operates through a digital-first model without traditional branch networks. Its core product is the Funding Gate digital platform, which serves as a unified interface connecting SMEs with over 50 financing providers including commercial banks, non-bank financial institutions, fintech companies, and government development funds. The bank offers three main financing programs: the Co-financing Model (creating portfolios with partner banks), the NBFI Program (partnering with non-bank financing companies), and the Agency Model (utilizing crowdfunding platforms). Additionally, sector-specific financing programs such as Education Sector Financing are offered. The bank leverages strategic partnerships with entities including Kafalah (guarantee program) and Saudi Venture Capital Company (SVC) to provide a comprehensive ecosystem supporting SME growth.

Differentiator

Problem solved

Functional benefit

Brands

• Funding Gate: A digital platform connecting SMEs with private sector financing providers, with over 50 financing partners including commercial banks, non-bank financial institutions, fintech companies, and government development funds. Total financing enabled exceeds SAR 36 billion.
• Co-financing Model
• NBFI Program
• Agency Model
• Kafalah Program
• Saudi Venture Capital Company (SVC)

Products and services

• Funding Gate Digital self-serve platform that connects Saudi micro, small, and medium enterprises with financing providers, allowing business owners to register via National Single Sign-On (Nafath), select a commercial registration, complete a financing application, and submit requests to multiple financing entities.
• Co-financing Model Financing program for Saudi SMEs offering up to SAR 15,000,000 with a payment period of up to 5 years, delivered jointly with partner banks (Saudi French Bank, Arab National Bank, Saudi Investment Bank, Bank AlBilad, Al Rajhi Bank) that manage dedicated co-financing portfolios.
• NBFI Program Financing program for Saudi SMEs offering up to SAR 15,000,000 with a payment period of up to 3 years, delivered in collaboration with NBFI partners (AlAam, AlTaiseer, AlRaedah, AlOula, Towseelat, Yanal) that provide cash liquidity to expand SME lending capacity.
• Agency Model Financing program for Saudi SMEs offering up to SAR 3,000,000 with a payment period of up to 2 years, delivered through dedicated portfolios on crowdfunding platform partners (Raqamyah, Forus, Manafa, Tameed, Lendo) that manage the funds and lend to SMEs.
• Education Sector Financing Sector-specific financing program for Saudi SMEs operating in education, providing long-term financing for capital expenditures such as renovation and construction, as well as short-term financing for operational expenses.
• Kafalah Program Credit guarantee program under the SME Bank Group that issues financial guarantees to encourage banks and financing companies to lend to Saudi SMEs by reducing their credit risk.
• Saudi Venture Capital Company (SVC) - Fund-of-Funds and Direct Investments Venture capital program under the SME Bank Group that deploys fund-of-funds and direct investments to strengthen the venture capital ecosystem and provide equity capital to Saudi SMEs and startups.

Quantifiable outcome

• Total funded amount since January 2020: SAR 20,938,193,601
• +3 more outcomes

Segments3 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

30 partnerships are on record, tiered core, secondary and minor.

• Monsha'at (Small and Medium Enterprises General Authority)coreStrategic or Co-development PartnerMonsha'at is the primary partner for SME Bank, co-organizing major entrepreneurship events like Biban Forum. The partnership focuses on empowering entrepreneurs, promoting innovation-driven enterprises, and creating sustainable business models across all sectors.
• Kafalah ProgramcoreStrategic or Co-development PartnerKafalah offers financial guarantees to encourage lending and support SME financing. Part of the SME Bank Group initiatives.
• Saudi Venture Capital Company (SVC)coreStrategic or Co-development PartnerSVC manages two strategic initiatives - fund-of-funds investments and direct investment programs - to strengthen the venture capital ecosystem in Saudi Arabia. Part of the SME Bank Group.
• National Development FundcoreStrategic or Co-development PartnerSME Bank operates as one of the development funds and banks under the National Development Fund, which aims to enable enterprises to access appropriate financing.
• Saudi French BankcoreChannel Partner/ Reseller/ DistributorCo-financing program partner bank that manages a dedicated portfolio for SME financing. SME Bank and the partner bank deposit allocated funds into the portfolio.
• Arab National BankcoreChannel Partner/ Reseller/ DistributorCo-financing program partner bank managing dedicated SME financing portfolios.
• Saudi Investment BankcoreChannel Partner/ Reseller/ DistributorCo-financing program partner bank managing dedicated SME financing portfolios.
• Bank AlBiladcoreChannel Partner/ Reseller/ DistributorCo-financing program partner bank managing dedicated SME financing portfolios.
• Al Rajhi BankcoreChannel Partner/ Reseller/ DistributorCo-financing program partner bank managing dedicated SME financing portfolios.
• AlAam (Alamthal)secondaryChannel Partner/ Reseller/ DistributorNBFI program partner providing financing solutions to micro, small, and medium enterprises.
• AlTaiseersecondaryChannel Partner/ Reseller/ DistributorNBFI program partner providing low-cost financing solutions to SMEs.
• AlRaedahsecondaryChannel Partner/ Reseller/ DistributorNBFI program partner providing financing solutions to SMEs.
• AlOula (Tamweel AlOula)secondaryChannel Partner/ Reseller/ DistributorNBFI program partner providing financing solutions to SMEs.
• TowseelatsecondaryChannel Partner/ Reseller/ DistributorNBFI program partner providing financing solutions to SMEs.
• YanalsecondaryChannel Partner/ Reseller/ DistributorNBFI program partner providing financing solutions to SMEs.
• RaqamyahsecondaryChannel Partner/ Reseller/ DistributorAgency model partner - crowdfunding platform managing portfolios for SME financing.
• ForussecondaryChannel Partner/ Reseller/ DistributorAgency model partner - crowdfunding platform managing portfolios for SME financing.
• ManafasecondaryChannel Partner/ Reseller/ DistributorAgency model partner - crowdfunding platform managing portfolios for SME financing.
• TameedsecondaryChannel Partner/ Reseller/ DistributorAgency model partner - crowdfunding platform managing portfolios for SME financing.
• LendosecondaryChannel Partner/ Reseller/ DistributorAgency model partner - crowdfunding platform managing portfolios for SME financing.
• Saudi Aramco (Aramco)minorStrategic or Co-development PartnerListed as a Funding Gate partner and strategic partner, contributing to the SME financing ecosystem.
• Saudi Arabian Mining Company (Ma'aden)minorStrategic or Co-development PartnerListed as a Funding Gate partner and strategic partner, contributing to the SME financing ecosystem.
• BpifranceminorStrategic or Co-development PartnerInternational partner listed as a Funding Gate partner, representing France's public investment bank.
• Industrial Development Bank of Korea (IBK)minorStrategic or Co-development PartnerInternational partner listed as a Funding Gate partner, representing Korea's SME-focused development bank.
• Small Industries Development Bank of India (SIDBI)minorStrategic or Co-development PartnerInternational partner listed as a Funding Gate partner, representing India's development bank for SMEs.
• Saudi Export Development AuthorityminorStrategic or Co-development PartnerGovernment entity listed as a Funding Gate partner supporting export-oriented SMEs.
• Environmental FundminorStrategic or Co-development PartnerGovernment fund listed as a Funding Gate partner supporting environmentally-focused SMEs.
• Cultural Development FundminorStrategic or Co-development PartnerGovernment fund listed as a Funding Gate partner supporting SMEs in the cultural sector.
• General Authority for Military IndustriesminorStrategic or Co-development PartnerGovernment authority listed as a Funding Gate partner supporting SMEs in the defense and military industries sector.
• National Center for Government Financial SystemsminorStrategic or Co-development PartnerGovernment entity listed as a Funding Gate partner providing governmental financial systems integration.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Raqamyah: Saudi P2P / debt-crowdfunding platform for SME financing and a Funding Gate partner under the Agency Model. A directly comparable peer in SME credit distribution.
• Saudi Industrial Development Fund (SIDF): Saudi government development finance institution providing loans, guarantees, and incentives to industrial SMEs and projects. SIDF is a peer development lender operating within the same National Development Fund ecosystem.
• Lendo: Saudi fintech crowdfunding platform partnering with SME Bank under the Agency Model. Operates a parallel SME credit marketplace channel, positioning it as a directly comparable origination channel.
• Small Industries Development Bank of India (SIDBI): India's principal financial institution for the promotion, financing, and development of the MSME sector. SIDBI is a direct peer in SME development banking and is also a Funding Gate strategic partner.
• Bpifrance: France's public investment bank dedicated to SMEs, mid-caps, and innovation. Bpifrance is a direct functional peer as a state-backed SME development bank providing financing, guarantees, and equity — and is also a Funding Gate strategic partner, underscoring shared operating model.
• Industrial Bank of Korea (IBK): Korea's leading SME-focused policy bank providing working capital, facilities loans, guarantees, and venture capital. IBK is a direct peer and a Funding Gate strategic partner.

Others

• Saudi Venture Capital Company (SVC): Sister entity under SME Bank Group managing fund-of-funds and direct VC investments. Comparable as a complementary SME-focused capital provider within Saudi Arabia.
• Kafalah Program: Sister program under SME Bank Group providing loan guarantees to encourage SME lending. Comparable as a complementary SME credit risk-mitigation instrument within Saudi Arabia.

Broad incumbents

• National Development Fund (Saudi Arabia): Parent umbrella entity housing Saudi Arabia's development banks and funds. As SME Bank's parent and the broader national development finance institution, NDF is the closest umbrella-level peer.

Regional players

• Monsha'at (General Authority for SMEs): Saudi regulator and ecosystem enabler for SMEs that co-organizes major programs (e.g., Biban Forum) with SME Bank. Operationally adjacent as a policy and ecosystem counterpart rather than a direct credit competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/SMEBank_SA
• LinkedInlinkedin.com/company/smebank-sa

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Small and Medium Enterprise Bank