Riyadh: The Small and Medium Enterprises General Authority (Monsha'at) has entered into a cooperation agreement with STC Bank, announced during the Money20/20 conference in Riyadh. This strategic partnership aims to enhance the entrepreneurship ecosystem by providing SMEs with access to innovative digital financing solutions.

According to Saudi Press Agency, the agreement is set to deliver Sharia-compliant financing options through a substantial portfolio valued at up to SAR5 billion. This initiative is designed to support small and medium enterprises across various economic sectors, providing them with essential financial resources.

The collaboration encompasses a comprehensive financing program that includes short-, medium-, and long-term facilities. These facilities, available as both cash and non-cash options, can extend up to 10 years. They are tailored to meet diverse needs such as working capital, operational expenses, asset and equipment acquisitions, financing against point-of-sale receivables, and financing for contracts and projects.

Additionally, the agreement aims to bolster e-commerce businesses by offering financing solutions for invoices, accounts receivable, business credit cards, supply chains, and trade finance services. These services include guarantees and letters of credit, further supporting the financial infrastructure of SMEs.