Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro, Small & Medium Enterprises (MSMEs) in India has signed a Memorandum of Understanding (MoU) with Small & Medium Enterprises General Authority of The Kingdom of Saudi Arabia (Monsha’at) for exploring and collaborating on matters of common interest in development and boosting of MSMEs and related ecosystems in their respective countries. SIDBI shall also offer its expertise and experience for the newly launched SME Bank in Saudi Arabia.
The said MoU is a part of the strategic bilateral initiatives which will help improve diplomatic relations between India and Saudi Arabia. The MoU was executed during the launch event of SME Bank at Riyadh on December 04, 2022 by Mazin Bin Ahmed Al-Ghunaim, CEO, SME Bank and V S V Rao, Deputy Managing Director on behalf of SIDBI and Monsha’at respectively.
Al-Ghunaim, CEO of SME Bank has mentioned that SIDBI’s collaboration would help to achieve the mission of the SME bank to drive the business journeys of SMEs by providing diverse digital financial products. He further informed that both organizations will explore cooperation in supporting MSMEs to expand their businesses, financial know how in the respective fields of strength, supporting the Saudi SME Bank project technically, etc.
Rao mentioned that “the MoU provides several opportunities of collaboration between the MSME Institutions of the 2 countries. SIDBI has more than 32 years of experience in Development Finance in areas of SME Credit, Credit Guarantee, Venture Capital, Cluster Development, Institutional Finance etc. SIDBI will be very happy to share its experience and knowledge to facilitate the growth and success of the new SME Bank of Saudi Arabia. SIDBI will also look forward this opportunity to find positive linkages for Indian MSMEs in Saudi Arabia”