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Kafala program

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Kafala program

Kafala Definition

  • Kafala Program is a collaboration between the Ministry of Finance, represented by the Saudi Industrial Development Fund (SIDF) and Saudi banks, which aims to promote financing to Small and Medium Enterprises (SMEs) within the Kingdom of Saudi Arabia.

  • Through this program, the bank will offer credit facilities and simultaneously,Kafala Program will issue a guarantee to the bank, covering up to 1.6 million.

Objectives of the Kafala Program

  • Helping SMEs to obtain Islamic finance for developing and expanding their activities.

  • Participating in the competitive abilities of local enterprises which will be positively reflected in the local economy.

  • Developing the SME sector to achieve the core objectives in supporting the local economy.

  • Increasing job opportunities by training & hiring Saudi citizens.

  • Expanding and developing the businesses of SMEs in promising areas.

  • Encouraging financial institutions to work closely with SMEs.

  • Achieving integration with corporate businesses.

  • Increasing imports’ variety in the economy. 

Features & Benefits

  • The maximum finance period for the program is 7 years, however, the period may be extended subject to bank's approval. The finance amount, period and cost will be determined by the bank based on reviews of financial documents.

NCB offers Kafala Program financing for the following purposes:  

Financing Tangible Fixed Assets:

  • Helping enterprises to finance their fixed assets such as (buildings, civil work & machinery…etc.) in order to enhance their production capacity.  

Financing Non-Tangible Fixed Assets:

  • Financing investment in industrial designs, marketing, and innovation…etc.

Financing Working Capital and Operating Expenses

Financing is also available for:

  • Commercial ‘Tayseer’ (short, medium & long term).
  • Facilities to issue Letters of Guarantee.
  • Facilities to issue Letters of Credit.

Each enterprise can obtain more than one Kafala finance, and that the Kafala coverage provided by SIDF does not exceed SR 1.6 million.

Financing Process

  • The business owner applies directly to the bank with the required documents.

  • The bank studies and analyzes the applicant’s request, according to the bank’s policies.

  • After approving the required finance, the bank applies to SIDF for the issuance of a Kafala guarantee, along with the written approval from the business owner accepting the Kafala program. (forms are available at all NCB branches or can be downloaded from our website). 

  • After evaluating the business owner request, and verifying that it adheres to the program policies, the SIDF will issue or refuse the required Kafala to the bank.

  • The business owner may be asked by SIDF to provide the necessary guarantees, including any collateral. 

  • Finally, the credit-line agreement will be signed by the bank and customer to obtain the finance.

Applicant Criteria

  1. The enterprise shall possess balance sheet audited for 3 years​.
  2. The enterprise must be under a legal entity (Sole Proprietor, Partnership Company, Limited Liability Company…etc.).
  3. The customer must have a clean credit history with NCB or any other bank. 
  4. The enterprise and its feasibility study must be economically and commercially viable. 
  5. The total sales of the enterprise must be under SR 30 million per annum.

Eligible Business Activities for the Program

  • Manufacturing
  • Agriculture
  • Trade
  • Education
  • Petrol, Gas and Mineral Resources
  • Building and Contractors
  • Transportation
  • Services
  • Medical (private clinics, private hospitals, medical centers)

Non-Eligible Business Activities for the Program

  • Activities that are not under SMEs.
  • Activities owned by the government.
  • Speculation activities (buying and selling of currencies or shares, real estate, and financing projects)

Required Documents for Kafala Program Financing

  1. Fill Kafalah Form.pdf.
  2. Fill Business Activity Information.pdf.
  3. Copy of ID.
  4. Copy of Commercial Registration.
  5. Copy of Article of Association and Board of Resolution in the case of Companies & Partnerships.
  6. Copy of Business Activity License.
  7. Copy of the last three years financial statements for outstanding project.
  8. Projected cash flow statements (if available).
  9. Sales Deeds such as real estate, vehicles, machinery... etc. (if applicable).
  10. Any other requirements from the bank.

For more information:

Contact us at AlAhli Phone Banking: 8002441005 


SIDF: Kafala Program for Financing SMEs

Address: Riyadh, Makkah Road

P.O. Box 395 Riyadh 11411

Phone: 0112917676

Fax: 0112910891

E-mail: sme@AlAhli.com​

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