Image via Saudi Press Agency
Last year, it was reported that Saudi Arabia’s Public Investment Fund (PIF), which is basically the Kingdom’s sovereign wealth fund, had set up a staggering $1 billion fund to provide much-needed support and access to capital to the country’s small to medium-sized enterprises (SMEs). In line with this “Fund for Funds” initiative, Saudi Arabia has now announced the opening of its first center that has been created to provide support and empower the Kingdom’s SME sector.
According to the Saudi Press Agency, the country’s Minister of Commerce and Investment and Chairman of the Board of Directors of the General Authority for Small and Medium Enterprises (Munshiaat) Dr. Majid Al-Qasabi inaugurated the center, which provides direct services to entrepreneurs and Saudi Arabians interested in carrying out commercial activities. At the inaugural event, Al-Qasabi also met with several SME owners, guides, and trainers, listening to their suggestions on how to better support the sector.
As reported by Saudi Gazette, the center also offers a platform called Miras, which aims to facilitate “procedures for starting a business and practicing commercial activities by providing all government services needed by entrepreneurs at the beginning of their commercial venture.” According to the news site, Munshiaat aims to ultimately raise the contribution of SMEs in the Gross Domestic Product (GDP) from 20 percent to 30 percent.
Both the center and the Fund have been created in line with the key objectives laid down in the country’s Vision 2030, a national strategy that aims to diversify Saudi Arabia’s economy, making it more of a knowledge-based one and steering it away from oil-dependency. As part of its efforts, Saudi Arabia has been focused on facilitating private sector growth and supporting the development of SMEs in creating job opportunities, promoting innovation, and increasing exports.
