Riyadh, Saudi Arabia — The Kafalah Program’s dedicated product for the information technology sector achieved significant growth in the first half of 2025. The initiative supports Saudi Arabia’s Vision 2030 digital economy objectives.
The Kafalah tech sector growth reached 39% in H1 2025. Supported tech enterprises increased from 46 in the same period of 2024 to 64 this year. The product is delivered with the Information Technology Development Program to advance the Kingdom’s technology ecosystem.
Kafalah Tech Product Drives National Digital Ambitions
Since launch, 261 technology enterprises have benefited from over SAR 2 billion in financing. Financial guarantees exceeding SAR 1.5 billion have also been provided. These guarantees help SMEs access vital funding while lowering lender risk.
Riyadh is the leading region. In May 2025, 46 enterprises in the capital secured over SAR 200 million in financing. Makkah followed with 11 enterprises receiving more than SAR 20 million. The Eastern Province supported four enterprises with funding of above SAR 5 million.
Since its inception, Riyadh has financed 199 enterprises with SAR 1.9 billion. The Eastern Province follows, with 29 enterprises receiving SAR 229 million. Makkah has 26 enterprises backed by SAR 89 million.
Strengthening Saudi Arabia’s Tech Sector Through Financial Support
The Kafalah tech sector growth shows the initiative’s role in advancing Saudi economic development. By providing guarantees, Kafalah lowers risk for lenders and improves funding access for tech SMEs.
The program aligns with the SME Bank and National Development Fund, which create an environment where small and medium-sized tech enterprises can thrive. Backed by partnerships, modern tools, and knowledge-sharing, Kafalah empowers Saudi entrepreneurs to support national digital transformation.
The Saudi Standard’s View: Financing is Fuel — But the Digital Engine Needs More
Kafalah’s tech product reflects real momentum for Saudi Arabia’s digital economy. Financial programs like Kafalah help close funding gaps for SMEs and startups.
But funding alone cannot power the Kingdom’s complete digital transition. The Saudi Standard believes Saudi Arabia must combine capital with more explicit rules, tech talent, and better innovation infrastructure.
The Kingdom’s focus on Riyadh has driven measurable results. Yet, entrepreneurs in Makkah, the Eastern Province, and other regions need equal access to funding and mentorship.
Kafalah is a proven catalyst. However, long-term economic diversification requires policies that help transform funding into scalable, competitive tech businesses across Saudi Arabia.
