Overview
The Social Development Bank is a Saudi financing institution established in 1391 AH under the name the Saudi Credit and Savings Bank, and its new statute was issued by Royal Decree No. M/34 dated 1/6/1427 AH to diversify its activity and develop its operations.[1]
On 30 Muharram 1438 AH, the Council of Ministers decided to amend its name to the Social Development Bank, and its board of directors is chaired by the Minister of Human Resources and Social Development.[1][3]
The Bank's activity covers financing for families and low-income households, entrepreneurs and small and emerging enterprises, and freelance work, alongside savings programmes, through a branch network spanning the regions of the Kingdom.[2][3][4]
Foundation and Establishment
The Bank was established in 1391 AH under the name the Saudi Credit and Savings Bank, and its new statute was then issued by Royal Decree No. M/34 dated 1/6/1427 AH.[1]
With the Council of Ministers' approval of the draft amendment to the Bank's statute on 2/3/1441 AH, corresponding to 30 October 2019, its role expanded in serving local development and diversifying financing tools.[2]
Statute and Governance
Financing Products
The Bank announced financial allocations exceeding 35 billion riyals for financing products for the years 2023–2025, of which 24 billion riyals were allocated to financing entrepreneurs and small and emerging enterprises.[5]
On 26/3/1440 AH, corresponding to 4 December 2018, it launched the Ahl product with a financing ceiling of up to 60,000 riyals, interest-free and without fees.[7]
On 11/7/1440 AH, corresponding to 18 March 2019, the Kanaf product was launched with a ceiling of up to 30,000 riyals, interest-free and without fees, and it targets divorced and widowed women.[6]
The Nafadh product, meanwhile, was launched on 17/10/1441 AH, corresponding to 9 June 2020, as the first financing product specialised in financing freelance work, with an amount of up to 150,000 riyals.[8]
Financing Enterprises and Freelance Work
During the years 2024–2026, the Bank allocated 27 billion riyals to financing small and emerging enterprises.[3]
The value of financing for these enterprises in 2023 reached 3,9 billion riyals, benefiting more than 8,6 thousand enterprises.[3]
In the same year, the total financing for freelance practitioners reached 3,7 billion riyals for 47,000 beneficiaries, and the total social financing reached 3,5 billion riyals for 70,000 beneficiaries.[3]
The total financing in the first quarter of 2025 exceeded 1.7 billion riyals, benefiting more than 20,000 citizens and enterprises.[4]
Savings
The Bank supports a savings culture through the Zoud programme, and the number of savers supported under it since its launch has reached 250,000 male and female citizens, with total amounts exceeding 550 million riyals in their savings accounts up to the first quarter of 2025.[4]
Branches and Reach
The Bank operates through 27 branches across all regions of the Kingdom.[2]
Frequently Asked Questions
Q: What is the Social Development Bank? A: A Saudi financing institution established in 1391 AH under the name the Saudi Credit and Savings Bank, whose name was amended to the Social Development Bank by a Council of Ministers decision on 30 Muharram 1438 AH.[1]
Q: What financing products has the Bank launched? A: The Ahl product on 4 December 2018 with a ceiling of 60,000 riyals, the Kanaf product on 18 March 2019 with a ceiling of 30,000 riyals for divorced and widowed women, and the Nafadh product on 9 June 2020 with a ceiling of 150,000 riyals for freelance work.[6][7][8]
Q: How much has the Bank allocated to financing small and emerging enterprises? A: 27 billion riyals for the years 2024–2026, after financing for these enterprises in 2023 reached 3,9 billion riyals, benefiting more than 8,6 thousand enterprises.[3]
Q: What is the Zoud programme? A: A programme to support savings in which the number of supported savers has reached 250,000 male and female citizens, with amounts exceeding 550 million riyals up to the first quarter of 2025.[4]
Q: How many branches does the Bank have? A: 27 branches across all regions of the Kingdom.[2]
Conclusion
The course of the Social Development Bank brings together its establishment in 1391 AH, the development of its statute and the amendment of its name on 30 Muharram 1438 AH, and the expansion of its financing portfolio for enterprises, freelance work, social financing and savings.[1][3][4] Related topics on the platform include the National Development Fund, Saudi Vision 2030, the Financial Sector Development Program, the Human Capability Development Program and the General Organization for Social Insurance.
Related topics
- TopicNational Development FundThe National Development Fund is a national development institution established by Royal Order No. (A/13) dated 13/01/1439 AH to provide general supervision over the development funds and banks in the Kingdom. It is organisationally linked to the Prime Minister, and through its strategy it aims to inject more than 570 billion riyals into real GDP by 2030.
- National visions and programmesSaudi Vision 2030: A Framework for TransformationAn introduction to Saudi Vision 2030, its social, economic and institutional themes, and the relationship between implementation programmes, long-term targets and measured results.
- TopicFinancial Sector Development ProgramThe Financial Sector Development Program is one of the executive programmes of Saudi Vision 2030. It was announced on 21 Rajab 1438 AH (24 April 2017) and began operating in 2018, aiming to enable financial institutions to support private sector growth, develop an advanced financial market, and enhance and enable financial planning, under an implementation plan covering 2020–2025.
- TopicHuman Capability Development ProgramThe Human Capability Development Program is one of the programs realizing Saudi Vision 2030, working to develop the capabilities of citizens from early childhood to lifelong learning and to link education outcomes with labor market needs. It was launched on 8 Safar 1443 AH (15 September 2021), and its plan comprises 89 initiatives, 16 strategic objectives and three pillars.
- TopicGeneral Organization for Social InsuranceThe General Organization for Social Insurance is a Saudi government body that applies the Social Insurance Law and delivers its benefits to subscribers in the public and private sectors through the pensions and occupational hazards branches. It approved a new law in 2024 setting the statutory retirement age, and it continues to develop its services and benefits within the Kingdom's social protection track.
- TopicThe Public Investment FundThe Public Investment Fund is a Saudi fund established in 1971 CE/1391 AH under Royal Decree No. (M/24), and linked in 1436 AH/2015 CE to the Council of Economic and Development Affairs. The assets it manages exceed SAR 3.4 trillion, and its activity spans three investment portfolios and giga-projects including NEOM, Qiddiya, the Red Sea, Roshn, and Diriyah.
Sources & references
- Saudi Press Agency (SPA) — the establishment of the Social Development Bank, its statute and its name
- Saudi Press Agency (SPA) — the approval of the draft amendment to the Bank's statute and its branches
- Saudi Press Agency (SPA) — financing of small and emerging enterprises and social financing
- Saudi Press Agency (SPA) — financing in the first quarter of 2025 and the Zoud programme
- Saudi Press Agency (SPA) — allocations for financing products 2023–2025
- Saudi Press Agency (SPA) — the launch of the Kanaf product
- Saudi Press Agency (SPA) — the launch of the Ahl product
- Saudi Press Agency (SPA) — the launch of the Nafadh product for financing freelance work