Small and medium enterprises (SMEs) in the Arab world are finding it challenging to secure financing from traditional banks as the latter have some regulatory constraints that make the banks hesitant to extend loans to the SME segment. As such, currently, there is a US$123 billion financing gap in the Arab world’s SME sector and insurers are better positioned to address this problem as such regulatory requirements do not bind them. Revealing this, Olivier Placca, co-founder of French credit insurance platform Tinubu Square, said if the bank has a credit insurance policy, they can use that as collateral for financing.
