Saudi Arabia approves SME strategy for 500,000 jobs

The Cabinet has approved a National Entrepreneurship and Small and Medium Enterprises Strategy, announced in September 2026, that aims to create more than 500,000 direct and indirect jobs across the Kingdom and lift the contribution of small and medium enterprises (SMEs) to gross domestic product to 35% by 2030.

The strategy is built around 13 initiatives focused on improving SME access to financing and markets, strengthening the operational capabilities of enterprises, developing the regulatory and innovation environment, and reducing the cost of doing business through simpler procedures. It also sets a goal of placing Saudi Arabia first globally in the Entrepreneurial Skills and Knowledge Index by 2030.

What the strategy includes

Planned measures include a comprehensive SME database linked to relevant government and ecosystem sources to unify data and better target policies and programs. The strategy envisages reviewing minimum Saudization requirements by sector to fit SME structures and encourage the hiring of Saudi nationals, attracting and localizing innovative global startups, improving financial awareness among business owners, and developing financing enablers and incentives for institutions that fund SMEs.

In the 2026 national budget, a dedicated initiative aims to stimulate SME growth by refunding selected government fees through the “Estrdad” program, with an allocated budget of about SAR 1.5 billion to ease business launch and continuity. The budget also targets training around 23,000 trainees in 2026 via a Skills Accelerator initiative, and creating more than 11,000 jobs in industry and mining, contributing to about 286,000 jobs in the sector by end-2026.

Why it matters: SMEs are a core pillar of Vision 2030. Their contribution to GDP was around 20% at the baseline and is estimated at roughly 28% by 2026, showing partial progress toward the 35% target. For residents and entrepreneurs, easier procedures, fee refunds, and expanded training point to a wider push to grow private-sector opportunities across the Kingdom.

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