Dr Ibrahim Al Assaf, The Minister of Finance announced here last night the decision to increase Finance guarantee for Small and Medium Enterprises (SMEs) to 80 percent for all existing and new enterprises to the maximum of SR 1.6 million for a single enterprise, and hike the maximum limit of total guarantees of sole proprietorships to SR 5 million, and companies to SR 10 millions. Dr Al-Assaf made this disclosure at an honoring party held in Al-Faislayiah Hotel, where he pointed to the amendment for the definition of SMEs as business entities whose annual sales do not exceed SR 30 million riyals, instead of SR 20 million that had been endorsed earlier. The Finance Guarantee Program (FGP) is one of the Saudi government's initiation to support small and Medium Enterprises (SMEs), the Minister said, reiterating the importance of such business entities for their pivotal role in the developing economy as well as the developed economy. As SMEs represent 85 percent of the enterprises in the Kingdom, the Minister highlighted the benefits of SMEs in providing job opportunities, achieving goals of parallel development, enhancing the growth of the middle class in society, contributing to facilitation of goods and services provision. Dr Al-Assaf also said SMEs is working to stimulate innovation and development, development of industrial skills and creation of a generation of administrative and technical cadres to serve all sectors of the economy. "Funding problems along with Risk guarantee (a tangible security) are the most prominent obstacles in the face of SMEs progress," he said. --MORE
