AI is not just a "buzzword" anymore. it’s a transformative tool that is reshaping how we evaluate creditworthiness and manage risk. Today, AI can analyze extensive datasets in real time, enhancing credit risk assessments and making lending faster and more efficient. With the global AI fintech market on the rise, AI has the potential to save banks up to $1 trillion by 2030. At Abwab.ai, we’re using AI to make lending smarter, more accurate, and more inclusive for MSMEs.
November 3, 2024
AI & Financial Inclusion: Democratizing Credit for Micro...
Access to finance remains a cornerstone of economic development, yet for micro and small-medium businesses (MSMEs), it’s often a steep uphill climb. According to the MonshaatSA, these businesses form the backbone of Saudi Arabia’s economy, accounting for 99.5% of all businesses and employing 63% of the private sector workforce. Despite their outsized role, a significant funding gap persists, one that AI is uniquely positioned to close.
November 21, 2024
SMEs & The Future of Financing: What Has 2024 Taught Us?
As 2024 comes to a close, I can’t help but reflect on the monumental strides we’ve made in SME financing this year. Small and medium enterprises (SMEs) are the backbone of our global economy, they drive growth, create jobs, and spark innovation. Yet, securing funding has always been their Achilles’ heel.
This year, though, felt different. We’ve seen shifts. Big ones. Driven by technology, evolving financial landscapes, and collaborative efforts. Let’s delve into what 2024 taught us about SME financing and where we go from here!
December 30, 2024
The Era of "AI-Powered" Saudi?
Saudi Arabia has enjoyed a fruitful year of events and initiatives intended to advance the adoption of artificial intelligence, propelling the Kingdom to the 14th position in the Global AI Index and 1st in the Arab world.
January 19, 2025
Saudi Arabia’s FY 2025 Budget – Driving SME Financing
Saudi Arabia’s fiscal year 2025 budget underscores a strategic push toward economic diversification and private sector empowerment, with small and medium enterprises (SMEs) taking center stage. From increased SME financing allocations and supportive regulations to the rollout of a new Saudi Riyal currency symbol, the Kingdom is aligning financial policy with its Saudi Vision 2030 goals. These measures are designed to enhance SME financing accessibility, foster innovation in fintech, and accelerate non-oil economic growth. The result is a multi-faceted strategy aimed at strengthening Saudi Arabia’s economic resilience and global financial identity.
March 10, 2025
GCC SME Lending Ecosystem - 2025 Outlook & Opportunities
The Kingdom has made SME development a pillar of its Saudi Vision 2030 economic plan. Authorities have set an ambitious target for banks – at least 20% of loan portfolios to be directed to SMEs by 2030. Progress is evident: by Q3 2024, Saudi MSME credit had surged 22.6% year-on-year to SR329.2 billion (≈$88bn), reaching 9.1% of total bank loans. Key enablers include the state-backed Kafalah | كفالة credit guarantee program, which issued SAR 13.9 billion ($3.7bn) in SME loan guarantees in 2024 – a 17% increase over the prior year. Kafalah’s guarantees helped over 5,300 businesses secure financing exceeding SAR 18 billion, reflecting robust demand as smaller firms scale up. To broaden funding access, Saudi Arabia launched an SME Bank in 2021 as a one-stop shop for debt, equity, and guarantees, with SAR 10.5 billion ($2.8bn) allocated over its first three years. Another innovation is Tamweel Gate, a digital platform connecting SMEs with 47 lenders for fast-track loans – often delivering decisions within days. These efforts, alongside reforms to business laws and a new bankruptcy code, signal Riyadh’s commitment to an SME-friendly ecosystem.
