Access to financing is one of the most powerful enablers of economic growth. But for micro, small, and medium enterprises (SMEs), it often remains one of the hardest things to obtain. In Saudi Arabia, these businesses form the bedrock of the economy, representing 99.5% of all companies and employing over 60% of the private sector workforce, according to Monsha’at. Yet despite this critical role, access to fast and flexible capitalre mains a major barrier.

The traditional credit system wasn’t designed for the pace, structure, or realities of SMEs today. It was built around lengthy processes, manual verification, and rigid documentation requirements, from full financial statements to formal collateral. And for the vast majority of small businesses in Saudi Arabia, especially those still building their operational history, that creates a dead end.

A report by the World Bank shows that more than 40% ofsmall businesses in emerging markets can’t access formal credit. In the Kingdom, initiatives like the SME Bank and Kafalah have helped move the needle, but only partially. A large portion of the financing still flows to medium or larger SMEs. In fact, only 27% of SME loans go to micro and small businesses, even though they make up the majority.

This points to a deeper structural issue: most financing models rely on traditional credit scoring, something many micro and small businesses simply don’t have the data to support. The result? Missed opportunities for growth, innovation, and job creation, all at a time when the government is aiming to raise SME contribution to GDP to 35% by 2030, as part of Vision 2030.

But the gap is no longer a technical inevitability. It’s a solvable problem, and the solution lies in data.

AI as the New Credit Engine

Artificial Intelligence has the power to transform SME lending by rewriting the rules of what qualifies as “creditworthy.” Instead of relying solely on traditional documentation, AI can analyze thousands of data points in real-time, from transaction history to supply chain activity, to build dynamic, adaptive credit profiles.

One of the most important breakthroughs lies in how AI can unlock the value of under used documents, especially in Saudi Arabia, where many businesses lack formal balance sheets but do have VAT registration certificates.

What was once just a tax compliance form has become a new cornerstone of inclusive finance.

AI systems can now scan a VAT certificate, extract key business identifiers like CR number, legal entity, and tax ID, and instantly verify them against official records. When combined with additional data inputs,such as e-invoicing behavior or supplier payment patterns, it becomes possible to build a reliable, real-time risk profile, even for businesses with no prior borrowing history.

According to the World Economic Forum, AI could reduce financing barriers for small businesses by more than 30% in the coming decade. In a market like Saudi Arabia, where the SME financing opportunity is valued at $67 billion, this represents not just innovation, but national economic potential.

From Verification to Velocity: Aajil at the Forefront

At Aajil, we’ve embraced this shift head-on. Ourplatform uses AI-driven document recognition and decisioning models to instantly process VAT certificates, eliminating one of the biggest bottlenecks in business credit approvals.

Instead of waiting days or weeks for manual review, our system reads and validates the certificate in seconds. It pulls critical data directly from the document, checks it against official registries, and begins the risk analysis automatically. This means that for thousands of businesses across Saudi Arabia, a single VAT certificate is now enough to unlock up to SAR 100,000 in instant credit.

This is the foundation of Aajil Express, our fastest, most streamlined offering, where the only requirement is a VAT certificate, and the entire process is digital from start to finish.

By combining AI with local knowledge and regulatory alignment, we’re helping ensure that every VAT-registered business in the Kingdom has a pathway to fast, flexible credit, whether they’re buying construction supplies, office equipment, or stocking their shelves for peak season.

The promise of AI in finance isn’t about automating decisions, it’s about opening doors that were previously shut, especially for the businesses that drive Saudi Arabia’s real economy. At Aajil, we’re proud to be building that future, one instant approval at a time.

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