Saudi Arabia Approves National SME Strategy

The Saudi Cabinet has approved the National Entrepreneurship and Small and Medium Enterprises Strategy, which includes 13 initiatives designed to accelerate business growth, attract global innovative startups, and reduce the cost of doing business in the Kingdom. The strategy aims 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, emphasized that the strategy is intended to develop the entrepreneurship ecosystem, enable businesses to grow and expand, and increase their contribution to the national economy. The initiatives focus on improving SMEs’ access to financing and markets, strengthening operational capabilities, developing the regulatory and innovation environment, and facilitating business operations. The strategy also aspires to position Saudi Arabia first globally in entrepreneurial skills and knowledge by 2030. Implementation will require coordination among 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 markets. Programs will support SMEs and startups in industrial cities and special economic zones, facilitate international expansion, and increase SME participation in government procurement. The strategy also includes creating a comprehensive SME database and initiatives to attract and localize innovative global startups.