The Small and Medium Enterprises Authority of Saudi Arabia is keen on enhancing its support to SMEs and startups in the region. The authority has brought about four initiatives for these entrepreneurs in a bid to boost and sustain the private sector.
Reimbursing Government Taxes
The authority has set aside around USD 1.9 billion (7 Billion Saudi Riyals) for reimbursing the government taxes fees that the company paid or will pay during their first three operational years. However, these companies should be registered between 2016 to 2021.
Increasing Kafalah Capital
It has also allocated around USD 213 million (800 million Saudi Riyals) to increase the capital of Kafalah. Kafalah is a program that supports SMEs by covering the risk percentage that investing parties take if a company they invested in fails.
It has allocated USD 426 million ( 1.6 billion Saudi Riyals) to provide different channels of funding for SMEs apart from banking institutes.
VC Fund For Startups
It has dedicated USD 750 million (2.8 billion Saudi Riyals) to boost aspiring startups with seed funding and investment opportunities.