Saudi Arabia approves national SME strategy targeting 500,000 jobs

RIYADH — The Saudi Cabinet on Tuesday approved the National Entrepreneurship and Small and Medium Enterprises Strategy, which includes 13 initiatives aimed at accelerating business growth, attracting global innovative startups and reducing the cost of doing business in the Kingdom.The strategy seeks to create more than 500,000 direct and indirect jobs and raise the contribution of SMEs to Saudi Arabia’s gross domestic product to 35%.Minister of Commerce and Chairman of the General Authority for Small and Medium Enterprises (Monsha’at) Dr. Majid Al-Qasabi said the strategy is designed to develop the entrepreneurship ecosystem, enable businesses to grow and expand, and increase their contribution to the national economy.The 13 initiatives form an integrated framework focused on improving SMEs’ access to financing and markets, strengthening their operational capabilities, developing the regulatory and innovation environment, and making it easier to do business.The strategy also aims to position Saudi Arabia first globally in the indicator measuring entrepreneurial skills and knowledge by 2030.Al-Qasabi said the strategy reflects the leadership’s support for entrepreneurship and SMEs and represents a shift toward a more integrated and efficient ecosystem that gives businesses greater opportunities to grow and contribute to economic development.He said implementation would require coordination among relevant government entities to enable SMEs to benefit from opportunities across different sectors, increase their participation in value chains and major projects, and expand into new domestic and international markets.The strategy marks a new phase in Saudi Arabia’s efforts to empower the private sector under Vision 2030, shifting the focus from primarily supporting the establishment of businesses toward creating the conditions needed for them to grow, scale and compete locally and internationally.Among the initiatives are programs to develop open commercial innovation, support SMEs and startups in industrial cities and special economic zones, facilitate international expansion and exports, and increase SME participation in government procurement and purchases by major companies.The strategy also calls for the creation of a comprehensive SME database linked to relevant databases across the ecosystem.Other initiatives include attracting and localizing innovative global startups, reviewing minimum Saudization requirements by sector, reducing the cost of doing business, improving financial awareness and literacy, developing financing enablers, and incentivizing institutions that finance SMEs.