Saudi Arabia Approves National SME Strategy

The Saudi Cabinet has approved a dedicated National Entrepreneurship and Small and Medium Enterprises Strategy, aimed at making SMEs and startups a driving force in the country's next phase of economic diversification. The approval came in September 2026.

The strategy is built around 13 initiatives covering the full journey of a small business — from accelerating growth for SMEs and startups, to reducing the cost of doing business, improving entrepreneurs' financial literacy, and developing financing enablers and incentives for institutions that fund small firms. Other initiatives focus on attracting and localizing innovative global startups, easing international expansion and exports, and supporting SMEs in industrial cities and special economic zones.

Among the more practical measures, the strategy calls for reviewing minimum Saudization (Nitaqat) requirements by sector to help SMEs grow, increasing SME participation in government procurement and major company purchases, and building a comprehensive SME database linked across the national ecosystem.

Ambitious targets

The strategy sets clear goals: raising SMEs' share of GDP to 35% by 2030, up from around 20%; creating more than 500,000 direct and indirect jobs; and positioning Saudi Arabia first globally in the Entrepreneurial Skills and Knowledge Index by 2030.

وزارة الاستثمار aside, منشآت (the Small and Medium Enterprises General Authority) is designated as the central coordinator of the ecosystem, overseeing databases, financing enablers, and capability-building programs. The strategy also integrates SME procurement and fee programs into the national budget, including the "Estrdad" initiative, which refunds selected government fees with a dedicated budget of 1.5 billion ريال سعودي. Registration for beneficiaries has opened through official government digital channels linked to procurement platforms.

For residents and business owners across الرياض, جدة and beyond, the strategy signals wider access to government tenders and financing, reinforcing the goals of رؤية السعودية 2030 and creating new opportunities for entrepreneurs.

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