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Saudi Arabia launches loan guarantee initiative to boost environmental investment
The agreement aims to provide guarantees for credit facilities offered to small and medium-sized enterprises (SMEs), stimulating investment in the environmental sector.
On Sunday, Saudi Arabia’s Minister of Environment, Water, and Agriculture, Eng. Abdulrahman Al-Fadley, attended the signing of an agreement between the Environment Fund and the Small and Medium Enterprises Loan Guarantee Program (Kafalah) to introduce a loan guarantee product for environmental projects.
The agreement aims to enhance investment in the environmental sector by providing credit guarantees for SMEs. It aligns with the launch of the Incentives and Grants Program Platform, which supports environmental initiatives across the Kingdom.
The initiative is designed to support economically viable micro, small, and medium enterprises struggling to secure financing guarantees. Through the Kafalah Program, financial institutions will be encouraged to extend support by covering part of the financing through guarantees.
During the ceremony, Al-Fadley, who also chairs the Environment Fund’s Board of Directors, launched the electronic platform for the Incentives and Grants Program in the Environment Sector. This platform aligns with the Fund’s strategy to drive sustainability and advance environmental projects in line with the National Environment Strategy.
Under the agreement, the Environment Fund and Kafalah will work together to advance the National Environment Strategy by financing environmental protection projects, driving investment in the environment and meteorology sectors, and facilitating credit access through approved financial institutions.
The partnership also aims to enhance SME support by strengthening their financial sustainability and improving their creditworthiness. By providing guarantees to financing institutions, the initiative encourages greater funding for viable SMEs in the environmental sector.
This collaboration highlights the ministry’s commitment to promoting environmental sustainability, attracting investment, and fostering public-private partnerships—key pillars of Saudi Vision 2030.
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