In 2017, the Yemen Loan Guarantee Program (YLG) was established. The program provides guarantees to empower small and medium-sized enterprise (SME) owners. The program aims to stimulate and expand the local economy through its support services. It’s worth noting that the potential market for financing SMEs amounts to 1.78 million micro-enterprises and 85,000 small enterprises. Therefore, the program is determined to continue its efforts to address this large market and do everything it can to achieve a better future for Yemen.
The program offers several products, most notably:
(1) Basic Product:
This product targets the agricultural, service, commercial, and industrial sectors, in addition to start-up projects. The maximum financing limit is 10 million riyals, and the coverage rate ranges between 50% and 70%.
(2) Smaller Expansion Product:
With a coverage rate of up to 90%, this product targets owners of agricultural, commercial, service, and industrial establishments, with a maximum financing ceiling of one million riyals.
(3) Youth Empowerment Product:
This project targets young entrepreneurs between the ages of 18 and 35, with the aim of empowering them and helping them succeed in their businesses. The product is suitable for all sectors, with a coverage rate of 80% and a financing ceiling of 2 million riyals.
(4) Women Empowerment Product:
One of the most important products offered by the Finance Guarantee Program, it targets women of all age groups and from all Yemeni territories and geographic regions without discrimination. The coverage rate is 80%, and its financing ceiling is one million riyals. It’s worth noting that the product serves all economic sectors without privatization.
