‘KIB 1st bank to take lead in development of SME sector’
KUWAIT CITY, Nov 27: Mr. Abdullah Alawadhi from Kuwait International Bank (KIB) affirmed that the bank is considered one of the first to take the lead in the development of SME sector and the empowerment of entrepreneurs in Kuwait. This came recently in his latest participation in the Arab SMEs Summit, which was held recently in the Kingdom of Jordan. Invited as a guest speaker, Alawadhi represented KIB at the Summit, sharing the bank’s expansive subject matter expertise in a panel discussion that was delivered before a high-profile audience that included experts, iconic business leaders and investors, economists, as well as representatives of staterun and private institutions from around the world.
During their session, Alawadhi and his peer panelists exchanged views on how to enhance Arab SMEs’ participation in global value chains and access to regional and international markets. In his introduction, Alawadhi first reaffirmed KIB’s commitment, as a leading national financial institution, to contributing to the development of the SME sector and enabling the Kuwaiti entrepreneurs and small business owners. He then reiterated that KIB continues to take part in such awareness events, to shed light on the importance of influencing policy makers and public/private institutions, including banks, to adopt Arab SMEs and foster a business-enabling eco-system for where they can thrive. “Considering the key role this business segment is able to play in shaping and moving local economies; to provide all means of support to SMEs has become a strategic objective for all MENA countries – given how capable they are in bridging major private sector gaps, and ability to diversify sources of income and create new and different job opportunities, all of which resulting in comprehensive growth.
Innovative solutions
As the discussion went on, the panelists hashed over the extent to which Arab SMEs, in search for more business opportunities, are able to respond, when it comes to trends emerging within their local private sector, with Alawadhi pointing to the general direction towards vertical clusters, and the urge to create more specialized one that adhere to the commonly available skills in each country. The vitality of such topic primarily stems from SMEs’ role as primary resources of innovative solutions and contribution to the creation of a healthy competition that’s driven by creativity and innovation. This will inevitably lead to higher productivity and higher quality production, facilitating cross-border collaboration to support these vertical clusters.
The panel speakers conferred over the different types of support that are now required to further drive SME growth and means to facilitate cross-border alliances that enable them to compete regionally and internationally. They raised the pressing issue of what authorities can do to improve SME policy frameworks, playing a more enabling role than a regulatory one, in order to promote inclusive and sustainable economic growth and build resilient infrastructures to nurture SMEs.
Business models
A leading sector in the GCC, Alawadhi participated in the discussion by highlighting the pivotal role of banks, such as KIB, in expanding SME potential, noting how these financial institutions ventured on making major shifts in their business models to better serve their corporate customers with modernized banking products and services – tailored to suit their different business needs.
In terms of funding, Alawadhi further elaborated, saying: “luckily in GCC countries, there is no shortage of funding. Finding capital for this segment to support them financially is no longer a problem. In fact , the average transaction size for SMEs in the Gulf witnessed a whopping jump over the years, reaching over USD 4.4M in 2021, from merely USD 100-200K recorded in 2007 -2008”.
Alawadhi concluded his discussion by underscoring the serious steps that KIB has taken in support of the local entrepreneurship scene, shedding light on the Bank’s establishment of “KIB Mubader”, a company that was solely founded to work, hand-in-hand with Kuwaiti entrepreneurs and startup owners, as a business incubator and accelerator as part of a multi-service entrepreneurial establishment, which Alawadhi mentioned also delivers leading, multi-level workshops that are delivered in partnership with internationally-acclaimed experts, such as Rainmaking.
It serves to mention that the panel session, which hosted Alawadhi, garnered a lot of audience attention, whereby a growing crowd gathered to learn about and from the services delivered through KIB Mubader, and its impact on Kuwait’s comprehensive entrepreneurial ecosystem.