RIYADH: Saudi Arabia’s business consultancy sector is set to receive a significant boost with the introduction of a new financing product by the Small and Medium Enterprises Loan Guarantee Program, commonly known as Kafalah. This initiative was launched in collaboration with two other prominent state-run institutions, the Small and Medium Enterprises Bank and the Local Content and Government Procurement Authority. The program is geared toward empowering local medium, small, and micro-sized enterprises within the consultancy industry, facilitating their active participation in this crucial sector. The primary objective behind the launch of this financial product is to provide support to consulting firms of varying sizes, including MSMEs, by extending guarantees that cover financing risks up to 90 percent. According to Abdulrahman bin Abdullah Al-Samari, CEO of the authority, the consulting sector is experiencing significant growth in the Saudi market, driven by the Kingdom’s economic initiatives, the Saudi Press Agency reported. Additionally, this collaboration plays a significant role in advancing the goals outlined in the Kingdom’s Vision 2030, highlighting the efforts of specialized entities by providing support and financial resources to bolster local consulting firms. Homam Hashem, a member of the board and the CEO of the Kafalah program, emphasized the importance of the local consulting industry and its role in Saudi Arabia’s economic progress. He highlighted the need to entrust national consulting organizations to produce specialized local content across various disciplines, including financial, administrative, engineering, and more. Hashem reaffirmed Kafalah’s commitment to facilitating local consulting firms to become key contributors and partners in improving their capabilities, company growth, and competitiveness in the local market. This financial program, which is tailored for the local consulting division, helps improve the sector’s competitiveness in the job market. It achieves this by enabling funding for sector stakeholders and providing financial facilities, thereby expanding coverage and lowering interest rates. It is worth noting that the authority has undertaken essential market research for the consulting sector, examined challenges, and identified growth potential. In August, Kafalah signed a cooperation agreement with the Saudi Export-Import Bank to introduce an export sector financing guarantee product, fostering the growth of SMEs’ trade endeavors, as reported by SPA. This initiative aligns with the Kingdom’s drive to attain the objectives outlined in Vision 2030, where SMEs are anticipated to contribute 35 percent of the nation’s gross domestic product.