Saudi Arabia's Social Development Bank earmarks 9bn riyals for micro-enterprises

The funding is aimed at businesses impacted by the coronavirus crisis

The Great Mosque and the Makkah Tower, deserted on the first day of the Muslim fasting month of Ramdan, in the holy city of Makkah, during the novel coronavirus pandemic crisis. AFP

Saudi Arabia's Social Development Bank has earmarked 9 billion riyals (Dh8.8bn) for micro-enterprises and self-employed businesses among a slew of measures to relieve the financial impact of the coronavirus crisis.

The lender approved a programme to back micro-enterprises and small businesses in sectors of utmost priority and potential, according to the state-run Saudi Press Agency. The multi-billion riyal programme will channel funding in four tracks.

The first track will provide easy and quick funding for 6,000 new and existing start-ups. The second track is a healthcare portfolio aimed at funding 1,000 medical establishments to raise their operational capacity during the crisis.

The programme will also offer affordable and fast financing solutions to 2,000 businesses by supporting the bank's accredited financing partners.

The bank will further offer its clients a 6-month grace period to repay installments plus restructuring loans for businesses working in sectors hit by the coronavirus.

The initiatives come as Saudi Arabia ramps up measures to shore up its private sector in the battle against the coronanvirus impact.

The kingdom pledged to cover 60 per cent of worker salaries up to 9,000 riyals per month in private sector industries hit by the coronavirus pandemic for the next three months.

This is in addition to the government’s 70bn riyal package to support the corporate sector and a 50bn riyal programme for banks and financial institutions.

Saudi Arabia has registered 22,753 infections, 162 deaths and 3,163 recoveries, according to its health ministry. The country is continuing with widespread testing while gradually lifting restrictions to prevent the spread of the coronavirus.

As they battle Covid-19, countries across the world have rushed to put together stimulus packages to shield their economies from the pandemic that has ravaged the global economy. More than $8 trillion has been pushed out in stimulus globally to date.

More than 3.3 million people have been infected with Covid-19 globally, while the death toll has climbed to more than 239,000 as of Saturday, according to the Johns Hopkins University, which is tracking the pandemic globally. Over 1.06 million people have recovered.