• The newly launched SME bank will provide SME financing to Alraedah through the partnership
  • The agreement will enable greater liquidity for the SME ecosystem of the Kingdom
  • Launched under the National Development Fund, the SME Bank will offer subsidized rates to promote growth within this vital economic sector

4th December, Riyadh, Saudi Arabia – Leading Saudi fintech company Alraedah signed an agreement with the newly launched Small and Medium Enterprises (SME) Bank today to expand and enhance financing options to this underserved market.

The primary objective of the bank, and subsequent partnership, is to inject liquidity, and promote growth across the SME sector of the Kingdom. As a Saudi Arabian Central Bank (SAMA) licensed entity, Alraedah will offer subsidized rates for financing through the SME Bank, which will increase the volume of trade and improve economic performance.

The new SME Bank has committed significant funds to Alraedah, enabling better access for SME’s to financing options for this underserved community. “We are excited to announce this partnership with the SME Bank, as our primary business operations focus on the enablement of such enterprises, making this opportunity ideal to cement our shared interests in improving the SME economy,” states Paul Melotto, CEO of Alraedah. “As one of only 3 non-banking financial institutions (NBFI) participating in this agreement, we are proud to continuously pioneer the financing sector of the Kingdom” Mr. Melotto continues.

Small and medium enterprises comprise the backbone of all major economies, representing approximately 90% of businesses and more than 50% of employment worldwide, and contribute both to the scale and sustainability of nations. “The establishment of the SME Bank will play a pivotal role in achieving Vision 2030’s objectives to bolster the role of SMEs in the Kingdom of Saudi Arabia, and we are excited to be an integral part of this journey,” comments Abdullah AlDawood, Chairman of Alraedah. “We will continue to seek and secure value-adding partnerships that demonstrate our commitment to empowering and championing Saudi SMEs,” Mr. AlDawood affirms.

Alraedah is the pioneer of bespoke solutions for small and medium sized enterprises (“SMEs”) seeking to achieve long-term, sustainable growth. Since its establishment in 2014, Alraedah has become the principal financing institution for SMEs in the Kingdom of Saudi Arabia. Our success is built on our simple and transparent process, our in-depth understanding of the local market, and our flexible financing programs.

Alraedah offers the most extensive coverage for Sharia’h compliant financing solutions within the Kingdom, with its headquarters located in Riyadh, a branch office in Burayda, and aggressive digital expansion plans. Our ease of accessibility ensures that we maintain our leading position within the financial services sector.