Monsha'at and STC Bank sign SAR 5bn SME financing agreement

Saudi Arabia's Small and Medium Enterprises General Authority, Monsha'at, signed a cooperation agreement with STC Bank to expand SME access to digital financing products, with a financing portfolio valued at SAR 5 billion. The agreement was signed on the sidelines of the Money20/20 conference in Riyadh. The financing is Sharia-compliant and covers working capital, equipment purchases, receivables, trade finance and other SME needs, with tenors reaching 10 years.

Working capital and equipment financing#

The financing programme offers facilities with terms of up to 10 years. Uses covered include operational expenses and working capital requirements, alongside purchases of assets and equipment. The agreement includes financing against point-of-sale receivables and funding linked to contracts and projects. E-commerce businesses fall within the scope, as do invoice and accounts receivable financing.

Trade finance and supply chain products#

Business credit cards, supply chain financing and trade finance services including guarantees and letters of credit are available to SMEs under the agreement. The facilities address different financing requirements: operational funding for immediate needs, asset and equipment purchases for investment, and receivables or invoice financing for businesses awaiting customer payments. The agreement covers both cash and non-cash financing needs.

Digital banking and Sharia compliance#

Monsha'at's SME ecosystem support role combines with STC Bank's digital banking platform under the agreement. All product categories are Sharia-compliant. Trade and commercial transactions are covered through guarantees, letters of credit and supply chain financing, alongside business lending products. The agreement spans short-term, medium-term and long-term financing across different operational stages.

Financing portfolio and scope#

The SAR 5 billion portfolio covers funding for day-to-day operations, asset purchases, receivables, contracts and trade activity. The agreement was signed to support entrepreneurship and facilitate access to Sharia-compliant financial products. Covered facilities include working capital for operating requirements, equipment and asset financing for capital investment, and receivables financing as an alternative liquidity source. Supply chain financing and trade guarantees extend the scope to commercial transactions.