SME Bank, in partnership with Aramco Taleed and fintech firm Manafa, has launched new financing solutions aimed at expanding funding access for small and medium-sized enterprises (SMEs) within Aramco’s ecosystem and Saudi Arabia’s industrial sector.

Announced during a ceremony in Dhahran, the initiative targets SMEs operating in the projects, manufacturing and services sectors, providing faster access to financing to improve liquidity, operational efficiency and business growth while addressing common funding challenges.

Under the collaboration, financing opportunities within the Aramco ecosystem are expected to reach around SAR1.5 billion ($400 million) over the next five years.

The programme offers a streamlined financing experience with simplified procedures and Sharia-compliant repayment plans of up to 12 months.

Available products include working capital financing, invoice financing, payroll financing and purchase order financing.

The initiative builds on the strategic partnership between SME Bank and Manafa, which began in 2023 as part of efforts to strengthen Saudi Arabia’s innovative financing ecosystem and broaden access to alternative funding solutions for SMEs.

SME Bank said it has been among the first development-focused financial institutions in the Kingdom to support non-traditional financing through its Agency Financing Program in collaboration with fintech companies.

The programme has facilitated more than SAR1 billion in financing across over 720 funding opportunities, highlighting the growing role of alternative financing in supporting business expansion and sustainability.

The partnership also offers a range of financing products, including working capital loans, supply chain financing, revolving limit loans, term loans and e-commerce loans.

Ibrahim Al-Rashid, SME Bank CEO, emphasised that the collaboration with Aramco Taleed and Manafa represents a step change in facilitating SMEs’ access to digital funding solutions.

He noted that the bank is committed to enabling SMEs’ growth by facilitating access to suitable funding, providing guarantees, addressing operational challenges, and enhancing efficiency, thereby supporting sustainability and strengthening competitiveness.

Al-Rashid further affirmed the bank's continued efforts to fulfill its developmental role and empower this vital sector through strengthening integration with the private sector and financing entities across the Kingdom.

JamilAl Bagawi, Aramco Senior Vice President of Diversified Industries, said: “Through the Aramco Taleed program, we continue to deliver unique solutions for local SMEs. Through collaboration, we aim to enable the local SMEs associated with Aramco's ecosystem to gain access to funding that supports their operational needs. These funding solutions can enhance the ability of SMEs to execute their operations smoothly and fulfill their commitments to Aramco across the projects, manufacturing, and services sectors.”

Manafa CEO Abdulaziz Al-Adwani said: "We are delighted to partner with Aramco Taleed and SME Bank, and we’re proud to contribute to strengthening the SME ecosystem in Saudi Arabia. Through these digital funding solutions, we are providing a seamless experience that enables SMEs to access tailored funding quickly, helping them overcome financial challenges and supporting their long-term sustainable growth." -TradeArabia News Service