Saudi Arabia’s Cabinet has approved a new National Entrepreneurship and Small and Medium Enterprises Strategy aimed at creating more than 500,000 direct and indirect jobs and increasing the contribution of SMEs to 35% of the Kingdom’s GDP.
Approved on Tuesday, the strategy includes 13 initiatives designed to accelerate SME growth, attract innovative global startups and reduce the cost of doing business in Saudi Arabia.
Minister of Commerce and Chairman of the General Authority for Small and Medium Enterprises (Monsha’at) Dr Majid Al-Qasabi said the strategy will strengthen the Kingdom’s entrepreneurship ecosystem by enabling businesses to grow, scale and expand their contribution to the national economy.
The initiatives cover access to financing and markets, operational capabilities, regulation, innovation and the wider business environment. The strategy also targets positioning Saudi Arabia first globally by 2030 on the indicator measuring entrepreneurial skills and knowledge.
The strategy marks a further shift in Saudi Arabia’s efforts to strengthen the private sector under Vision 2030, moving beyond supporting the establishment of businesses towards creating conditions that allow SMEs to scale and compete in domestic and international markets.
Al-Qasabi said implementation will require coordination between government entities so SMEs can access opportunities across sectors, participate more extensively in value chains and major projects, and expand into new markets.
Among the initiatives are programmes to promote open commercial innovation and support SMEs and startups operating in industrial cities and special economic zones. The strategy also seeks to facilitate international expansion and exports while increasing SME participation in government procurement and purchases by major companies.
A comprehensive SME database linked to relevant databases across the entrepreneurship ecosystem is also planned as part of the strategy.
Several initiatives focus on removing barriers that can constrain SME growth. These include improving financing enablers, strengthening financial awareness and literacy, and introducing incentives for institutions that provide financing to SMEs.
The strategy also proposes reviewing minimum Saudisation requirements by sector and reducing the cost of doing business, alongside measures to attract and localise innovative global startups.
The government’s emphasis on SME participation in procurement and major projects is intended to broaden access to commercial opportunities, while export and international expansion initiatives could help Saudi businesses reach markets beyond the Kingdom.
Al-Qasabi said the strategy reflects the leadership’s continued support for entrepreneurship and SMEs and aims to create a more integrated and efficient ecosystem in which businesses have greater opportunities to grow and contribute to economic development.
The new strategy places SMEs at the centre of Saudi Arabia’s broader private-sector development agenda, with job creation, economic diversification, entrepreneurship capabilities and greater business competitiveness forming key priorities through 2030.