Minister of Environment, Water and Agriculture, Eng. Abdulrahman Al-Fadley, oversaw the signing of a significant agreement between the Environment Fund and the Small and Medium Enterprises Loan Guarantee Program (Kafalah). The agreement marks the launch of a new loan guarantee product aimed at supporting environmental projects across Saudi Arabia.
This initiative is part of the ministry’s broader mission to enhance environmental sustainability and attract investment into the environmental sector. It reflects ongoing efforts to bring in integration between the public and private sectors, ultimately driving innovation and creating new growth opportunities in this critical field. These efforts align with the goals of Saudi Vision 2030, demonstrating a commitment to environmental progress and sustainable development. The primary objective of this initiative is to offer credit facility guarantees to small and medium-sized enterprises (SMEs), thereby driving investment into the environmental sector. This announcement coincided with the unveiling of the Incentives and Grants Program Platform, a key step towards promoting environmental projects within the Kingdom.
As part of the event, Al-Fadley, who also chairs the Board of Directors of the Environment Fund, introduced the Incentives and Grants Program’s electronic platform. This platform, developed under the Environment Fund, is designed to help develop sustainability and spur projects and initiatives in line with the objectives of the National Environment Strategy.
Under the agreement, both parties will collaborate to support the National Environment Strategy by bringing in environmental protection projects in the Kingdom, funding environmental initiatives, and encouraging investment in the environmental and meteorological sectors through the provision of credit facilities in partnership with approved financial institutions.
The collaboration outlined in the agreement focuses on advancing the Kingdom’s environmental agenda. These efforts will be supported through partnerships with accredited financial institutions. Additionally, the agreement seeks to strengthen cooperation between the Environment Fund and the Kafalah Program by supporting the target group of SMEs. The partnership aims to build a robust ecosystem for these businesses, bolster their financial sustainability, and improve their credit profiles by offering necessary guarantees. This is expected to encourage financial institutions to increase their support for economically viable SMEs.
This initiative is part of the ministry’s broader efforts to advance environmental sustainability, drive investment in the environmental sector, and support innovative projects. It also aims to develop collaboration between the public and private sectors, enhancing innovation and financing for environmental initiatives while creating new opportunities for growth and investment in this critical sector. These efforts align with the objectives of Saudi Vision 2030.
