Saudi Gazette report

RIYADH — Minister of Environment, Water and Agriculture Eng. Abdulrahman Al-Fadley witnessed on Sunday the signing of an agreement between the Environment Fund and the Small and Medium Enterprises Loan Guarantee Program (Kafalah) to launch a loan guarantee product to support environmental projects in the Kingdom.

The agreement seeks to provide guarantees for credit facilities provided to small and medium-sized enterprises (SMEs), contributing to stimulating investment in the environmental sector. This agreement coincides with the launch of the Incentives and Grants Program Platform to support environmental projects in the Kingdom.

The agreement aims to support the financing of economically viable micro, small, and medium enterprises that face challenges in providing the required guarantees to financing entities. The Kafalah Program contributes to providing financial guarantees that cover a portion of the financing granted to these enterprises, encouraging financing entities to provide the necessary support.

During the ceremony, Al-Fadley, who is also chairman of the Board of Directors of the Environment Fund, launched the electronic platform for the Incentives and Grants Program in the Environment Sector, one of the Environment Fund's programs to promote sustainability and stimulate projects and initiatives, in line with the National Environment Strategy.

Under the agreement, the two parties will work to contribute to achieving the National Environment Strategy by stimulating environmental protection projects in the Kingdom, financing environmental initiatives, and promoting investment in the environment and meteorology sectors by providing credit facilities in partnership with approved financing entities.

The agreement also aims to foster joint cooperation between the two parties by supporting and developing the target group, contributing to strengthening the ecosystem of these entities and achieving their financial sustainability. It also aims to enhance their credit capabilities by providing the necessary guarantees to financing entities, encouraging them to increase the percentage of financing for economically viable SMEs within the target group.

This step comes within the framework of the ministry's efforts to enhance environmental sustainability, stimulate investment in the environmental sector, promote environmental sustainability, and support pioneering projects. It also falls within the framework of the ongoing efforts to achieve integration between the public and private sectors, which enhances innovation and financing in environmental projects and creates new opportunities for growth and investment in this vital sector, in line with the goals of Saudi Vision 2030.