• Iraq’s Central Bank to launch Riyada Bank soon, dedicated to financing SMEs and managing all related funding initiatives.
• Previous financing programs reduced project default risks through partnerships with local financial institutions like the Iraqi Company for Bank Guarantees.
• Riyada Bank will also support startups lacking collateral, aiming to improve credit access and inspire future SME-focused banks.

Riyada Bank

The Central Bank of Iraq announced that it will soon launch Riyada Bank to support SMEs in Iraq. It will launch soon after completing the establishment procedures needed and other all related details.

The director of Financial Inclusion at the Central Bank of Iraq indicated that this new bank will specialize in financing small and medium-sized projects. Furthermore, this bank will manage all initiatives related to financing these projects. 

SMEs

The director also further points out that previous initiatives achieved positive results. This includes creating mechanisms to reduce the risk of project defaults on loan repayments. This is through building partnerships with local financial institutions, such as the Iraqi Company for Bank Guarantees.

He also notes that plans have been put in place to offer support to startups that do not have sufficient assets to provide collateral for financing. Furthermore, this approach aims to ease access to credit for young businesses. 

Moreover, the Central Bank has identified areas that can be utilized by Riyada Bank. This could serve as a model for future SME-focused banks.

Bottom Line: Riyada Bank represents Iraq’s continued efforts to strengthen SME financing and support economic diversification. By addressing collateral challenges and building partnerships, the bank seeks to reduce risks while broadening credit access. Its model could influence the creation of similar institutions across the country. 

For entrepreneurs and small businesses, the initiative signals new opportunities for sustainable growth, though its success will depend on effective implementation and long-term stability.