‘Economy boost, creating job opportunities priority’

KUWAIT CITY, June 2: The National Fund for Small and Medium Enterprises Development and Kuwait Credit Information Network (CINET) signed a memorandum of understanding (MoU) to enhance the integration of credit information exchange to support entrepreneurs, so that the small and medium enterprises (SMEs) have access to financing more efficiently and transparently. This step is in line with efforts to develop the financing environment for entrepreneurs through the provision of a more comprehensive and accurate database, which will help financing entities to make informed decisions based on complete information about the credit history and financial obligations of SMEs. Under the MoU, data on transactions and financing facilities provided by the National Fund will be included in the credit reports of CINET.

This expands the scope of credit coverage to include, for the first time, government financing data, in addition to data from the financial and banking sectors. This collaboration coincides with the recent launch of the SME Score creditworthiness assessment service by CINET, which aims to provide financiers with a specialized tool to measure the financial solvency of enterprises and assess their ability to meet their financial obligations based on objective data and actual repayment behavior. Both parties affirmed that the memorandum is a significant step towards developing the financing decision-making system in the country. This is achieved through the exchange of credit information and the provision of a more comprehensive picture of the financial standing of entrepreneurs, enabling financing entities to assess risks and opportunities more accurately and fairly.

The integration will enhance market transparency by including financial obligations and facilities granted to enterprises in credit reports, allowing financiers to gain a complete understanding of the financial solvency of entrepreneurs while supporting the sustainability and growth of SMEs. Basma Al-Jassem, acting Director General of the National Fund, stated that the fund continues to work towards achieving its objectives of developing the national economy and creating job opportunities by supporting business owners. She added that the memorandum aims to develop financing tools for SMEs in accordance with Law No. 98/2013 and Law No. 9/2019. She indicated that the integration with CINET will provide accurate historical information on credit facilities and repayment patterns, giving committed entrepreneurs more competitive advantage when applying for financing. She pointed out that providing more comprehensive credit data will raise the level of trust between entrepreneurs and financing entities and facilitate access to financing for the expansion of promising enterprises.

CINET Chairperson Alia Bader Al-Humaidhi affirmed that the company has been committed for nearly 25 years to provide the banking and financial sectors with credit information and reports that support financial decision-making. She considers the partnership with the National Fund a significant expansion of credit coverage to include the government sector, which raises the efficiency of the financial system and contributes to supporting economic growth in Kuwait. She added that the creditworthiness assessment service for SMEs will provide financiers with an accurate and effective tool for evaluating the financial viability of projects. She believes this will enhance confidence in financing the vital sector. She emphasized that SMEs are considered the cornerstone of the national economy and that providing accurate and comprehensive credit information about their financial performance will boost their growth and sustainability, thereby, encouraging increased funding.

This collaboration is a valuable shift towards establishing a data-driven financial culture in Kuwait by linking government financing data with the credit reporting system used in the private sector, ensuring that local enterprises are evaluated based on a more comprehensive and equitable financial record. Experts believe this step will contribute to enhancing financial transparency and improving the quality of financing decisions. Furthermore, it will support the State’s efforts to diversify the national economy and empower entrepreneurs and business owners to access the necessary financing to develop their businesses and achieve sustainable growth.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff