His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Board of Directors of the National Development Fund, has approved the renewal of the membership of Yousef bin Abdullah Al-Bunyan as Chairman of the Board of Directors of the Small and Medium Enterprises Bank for a period of three years, effective June 3, 2026 (corresponding to 03/06/1447 AH) . This decision reflects the ongoing commitment to good governance and the consolidation of development priorities related to empowering the small and medium enterprises sector and expanding its access to financing.
Implications of the decision: Continuity of governance and consolidation of priorities
The renewal of the bank's chairman's term reflects an institutional commitment to stability in credit and development policies , ensuring the continuity of initiatives launched in recent years to support small and medium-sized enterprises (SMEs). The decision is also interpreted as a regulatory signal to the financial market regarding the alignment of policies with private sector development objectives, and the strengthening of financing tools that reduce the credit access gap and support the development of innovative financial products tailored to the specific needs of this sector.
Background: A development bank within the National Development Fund system
The Small and Medium Enterprises Bank was established by a Cabinet decision and is one of the development funds and banks affiliated with the National Development Fund. Its mission is to increase the total loan portfolio in the financial sector, bridge the financing gap , and enhance the contribution of financial institutions in providing innovative financing solutions; this aims to increase the ability of small and medium enterprises to expand, diversify their sources of income, and improve their risk management capabilities.
These objectives are consistent with the economic transformation path, where the small and medium enterprises sector is viewed as a key pillar of economic development and a major enabler for increasing the private sector’s contribution to GDP, increasing employment, stimulating innovation, and localizing value chains.
Chairman's Message: Stimulating Growth and Maximizing Economic Impact
Yousef Al-Bunyan expressed his gratitude to the Crown Prince for his confidence, emphasizing that the continued support for the small and medium-sized enterprises (SMEs) sector has been the primary driver of its remarkable expansion in recent years , both in terms of financing products and the increased value of available facilities. He noted that the Board of Directors will continue its efforts to stimulate the growth of SMEs and enhance their contribution to the GDP, thereby achieving financial sustainability and supporting the Kingdom's economic growth.
Analysis: How will this decision affect the financing market for small and medium-sized enterprises?
From a public policy perspective, the appointment of the bank's leadership is expected to accelerate decision-making and the development of specialized financing products that address the diverse needs of various sectors (technology, light manufacturing, services, and supply chains). The decision also enhances the bank's ability to build partnerships with other banks and finance companies to expand indirect lending, improve guarantee mechanisms, and develop alternative financing tools that support businesses throughout their lifecycle, from establishment to expansion.
At the investment level, clear institutional direction typically reduces uncertainty for financiers and investors, creating a more predictable foundation regarding the cost and terms of financing. Institutional stability also facilitates more accurate measurement of impact through indicators such as portfolio growth, default rates, and the level of financial inclusion across different regions and sectors.
Different perspectives: What is the market looking for?
Experts believe that enhancing the bank's impact requires continued efforts to bridge the financing gap for startups and micro-enterprises, integrating direct and indirect financing tools, and developing products tailored to the risks of innovation and entrepreneurship. Others, however, emphasize the importance of risk management, balancing growth with financial sustainability , and developing a digital infrastructure that facilitates creditworthiness assessments, expedites lending procedures, and increases transparency.
Between these two perspectives lies the challenge of balancing expanded access to finance with the maintenance of robust credit standards. Success hinges on the bank's institutional capacity to design risk-adjusted products, foster partnerships with the financial sector, and provide financing channels tailored to the nature and size of each sector.
The Saudi context: Empowering the private sector within a long-term development vision
This decision aligns with the Kingdom's approach to strengthening the role of small and medium-sized enterprises (SMEs) within the framework of economic diversification and expanding the base of value-added production and services. Through targeted financing and innovative solutions, the development system aims to enhance market efficiency, improve the quality of growth, and support the competitiveness of SMEs both locally and regionally, reflecting a strategic balance in formulating economic policies and translating them into practical implementation.
a summary
The renewal of the chairmanship of the Board of Directors of the Small and Medium Enterprises Bank provides the necessary institutional continuity to advance financing and empowerment programs. This continuity is expected to translate into an expanded loan portfolio, greater product diversification, and improved financial inclusion, thereby supporting the sector's contribution to GDP and enhancing financial sustainability. Furthermore, continued coordination within the National Development Fund framework strengthens the alignment of policies and implementation programs, balancing private sector growth with risk management and fiscal discipline.
