Monsha’at and STC Bank sign agreement for up to 5 billion riyals in SME finance

Saudi Arabia’s SME authority, Monsha’at, has agreed with STC Bank to create a financing portfolio of up to 5 billion riyals, or $1.33 billion, for micro, small and medium-sized businesses. This is not a single cash injection: it is a framework for Sharia-compliant digital financing, from short-term working capital to facilities lasting as long as 10 years for equipment, contracts, invoices, trade and e-commerce needs. The practical goal is to make funding better fit the uneven cash flows of smaller companies, which may need money to buy stock, fulfill an order or bridge the wait for a customer payment. The agreement could widen access to more tailored credit across sectors, but the 5 billion riyals is the portfolio’s maximum size, not money guaranteed to be deployed immediately.