The General Authority for Endowments has invited endowment and non-profit institutions to take advantage of the Guarantee Portfolio, which was launched in partnership with the "Kafala" Small and Medium Enterprises Financing Guarantee Program. This portfolio offers a comprehensive range of financial guarantee solutions for small and medium-sized enterprises (SMEs) within the endowment and non-profit sectors. The aim is to support these organizations in obtaining the necessary financing to develop their endowment projects, expand their developmental activities, and contribute to the growth of the national economy.
During the awareness campaign initiated through its official platforms, the Authority emphasized that the portfolio provides added value to endowment and non-profit organizations by facilitating access to financing and overcoming obstacles that may hinder these organizations from accessing financing services from financial institutions. This, in turn, contributes to their financial sustainability through collaboration with 12 banks, more than 23 financing companies, 11 incubators, and business accelerators.
The "Kafala" program, in partnership with the Authority, enables recently registered endowment and non-profit entities to access financing for business development and growth, thus reducing the lending risk for financial institutions and diversifying their financing portfolios.
The program "Kafala" has set certain requirements for organizations to benefit from its services, including that the activity must be economically and financially viable, aligned with Vision 2030 of the Kingdom, enhance the competitiveness of small and medium-sized entities, support local content requirements by substituting imported products with local ones, employ and train national talents, and produce innovative goods and services.
The General Authority for Endowments aims to contribute to the financial sustainability of the endowment and non-profit sectors by providing effective guarantees to stimulate the financing of sector entities. It also offers financial guarantees to enhance growth opportunities through strategic partnerships, national expertise, and innovative technological tools. This assistance helps endowment and non-profit entities overcome financing obstacles through innovative solutions and programs that enhance the sector's contribution to the national GDP.
It's worth noting that the General Authority for Endowments works to regulate, preserve, and develop endowment services for beneficiaries, ensuring the fulfillment of endowments' conditions by applying best practices and regulations. This is in line with the goal of enhancing the endowment sector's role in economic and social development, as well as social solidarity, in accordance with the principles of Islamic law and regulations, and to achieve the aspirations of the wise leadership in making the Kingdom a leader in the non-profit sector.