Tourism Development Fund Launches SME Financing for Tourism Growth

The Tourism Development Fund has introduced its ‘Tourism Empowerment’ programs, designed to provide comprehensive financing solutions to support micro, small, and medium enterprises (SMEs) in Saudi Arabia's tourism sector.

This initiative aims to create a thriving business environment, fostering growth and sustainability through collaborations with commercial banks, government entities, financing companies and financial technology firms. The new programs include joint financing solutions with commercial banks, offering flexible repayment terms of up to 60 months to help SMEs scale their operations.

Additionally, TDF is rolling out the Financing Companies Program in partnership with licensed financing companies. This program offers tailored financial solutions, including working capital and capital expenditure financing, which will ultimately improve the quality of tourism services across the Kingdom.

For micro and small enterprises, the ‘Tourism Empowerment’ initiative also includes financing options via financial technology companies. These offer quicker access to funds and streamlined services, enabling businesses to operate in a modern and agile environment. With repayment periods extending up to 12 months, these flexible options are designed to meet the specific needs of SMEs in the tourism sector.

Another key component of the initiative is the Kafalah Program, a loan risk guarantee scheme aimed at supporting SMEs that may not have the necessary collateral for financing. This program ensures that businesses can secure funding despite potential risks.