The Executive Manager – SME banking – KFH, Homoud Al-Awadhi said that the bank plays a major role in supporting and financing small and medium enterprises, thus affirming the significance of this sector in the field of economy and growth.
Al-Awadhi indicated that KFH provides, through SME Banking Department, a diversified package of banking and finance services and solutions to fulfil the needs of the SME sector. He noted that the package includes cash finance services e.g., Murabaha, Tawarruq and Ijara and non-cash finance e.g., all types of letters of credit and letters of guarantee.
He added that KFH provides other services e.g. points of sale (POS) as well as all e-banking services that would facilitate the management of corporate accounts e.g. balance inquiries, bank transfers, employee salary transfer, viewing POS reports and many other sundry e-banking services.
Al-Awadhi reiterated that the significance of the SME Sector lies in the fact that it forms a potential seed for the emerging of major companies, thus providing job opportunities for the Kuwaiti youth at low capital costs. Also, the SME sector is characterized for using local resources at a large scale, supporting suppliers and merchants and enhancing the economic cycle. The SME sector contributes to the enhancement of self-sufficiency policies for certain commodities and services and plays its role in supporting domestic product.
Al-Awadhi highlighted KFH role in supporting and financing the companies affected by COVID19 pandemic, by providing facilitated finance services to SME and other economic entities which were affected by the Covid19 pandemic, thus aiming to cover the needs of these corporates and sectors and prevent the short term liquidity crises from turning into a solvency crises.
He added that the bank is fully compliant with the provisions of Law No. 2 for the year 2021 regarding the rescue of Small and Medium Enterprises from the impacts of the COVID19 pandemic. The law is available on KFH website for those interested. The website comprises all details concerning the rescue of SME including procedures, finance cost, beneficiaries, illegible parties and other details of the law as per the organizational framework set by the Central Bank of Kuwait