Saudi Arabia approves small business development strategy
In Saudi Arabia, the government has approved a new national strategy for the development of small and medium-sized enterprises and entrepreneurship. The decision was made on September 15 at a Cabinet meeting chaired by Crown Prince and Prime Minister Mohammed bin Salman, Asharq Al-Awsat reports.
The strategy is intended to strengthen the role of small and medium-sized businesses in production, investment, and job creation. Authorities plan to improve companies’ access to financing and sales markets, as well as promote their scaling and competitiveness in domestic and international markets.
Targets for 2030
Minister of Commerce and Chairman of the General Authority for Small and Medium Enterprises Monsha’at, Majid bin Abdullah Al-Kasabi, said that the goal is to increase the contribution of small and medium-sized enterprises to the country’s gross domestic product to 35% in line with the Saudi Vision 2030 program.
The strategy includes 13 initiatives. In particular, they concern access to financing, markets, public procurement, export support, and international business expansion. Plans also include developing the regulatory and innovation environment, reducing the cost of doing business, and creating a comprehensive database on the sector.
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According to Al-Kasabi, the implementation of the measures is expected to help create more than 500,000 direct and indirect jobs. Saudi Arabia also aims to rank first in the Entrepreneurship Skills and Knowledge Index by 2030.
Challenges for entrepreneurs
Saud Al-Subhan, Deputy Governor for Entrepreneurship at Monsha’at, said that by the end of the second quarter of 2026, the number of small and medium-sized enterprises in the country had exceeded 1.83 million. The new strategy, he said, is intended to shift the focus from simply increasing the number of companies to their sustainable growth, productivity, and entry into new markets.
An assessment of the sector identified 12 priority challenges, including limited support for the commercialization of innovations, a shortage of specialized personnel, difficult access to financing, high and unpredictable costs, a lack of data for decision-making, and difficulties retaining employees amid competition from large companies and the public sector.
Monsha’at developed the strategy and will oversee its implementation together with public, private, and nonprofit entities. Planned measures include supporting startups in industrial cities and special economic zones, attracting innovative international startups, and reviewing minimum Saudization requirements by sector.
