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- Minister of Industry and Mineral Resources, Bandar Alkhorayef made the announcement during a dialogue session at an event organized by Monsha’at
- During the Industry and Mineral Resources Pioneers week, officials highlighted the impact of pioneering projects in the sector
RIYADH: Small and medium enterprises constitute 90 percent of Saudi Arabia’s industry and minerals companies, revealing that the sector is not “exclusive” to top players, according to a senior official.
The comments by the Kingdom’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, were made during a dialogue session at an event organized by the General Authority for Small and Medium Enterprises, known as Monsha’at, the Saudi Press Agency reported.
During the Industry and Mineral Resources Pioneers week, officials highlighted the impact of pioneering projects in the sector, underlining how industrial technical applications, often led by SMEs, effectively resolve challenges in large-scale industries, SPA said.
In recent years, the Saudi government has launched several initiatives to bolster SMEs’ presence and participation in various sectors, including industry and mining.
These undertakings, spearheaded by entities such as Monsha’at, focus on providing a range of support services, including financing, licensing facilitation, and business development support.
Programs like the SME loan guarantee program – known as Kafalah – and the Saudi Venture Capital Co. are designed to enhance access to capital, mitigating one of the significant challenges faced by smaller companies.
Other examples of SMEs demonstrating innovative capabilities in the sector include improving mine preservation, environmental safety, and productivity.
This reflects the broader trend within Saudi Arabia, where SMEs increasingly leverage technology and innovation to address complex industrial challenges.
In an interview with Alekhbariya, the minister said due to facilitating regulation efforts in the Kingdom, “opening a factory is easier than opening a restaurant.”
He added that the government is “working on building factories and leasing them to investors to support them and ease the burden on them,” as part of its goal to bolster entrepreneurs and sustain their projects.
The Saudi government’s support extends beyond facilitating market entry for SMEs. There is a concerted effort to ensure the long-term sustainability of these enterprises, helping them navigate the industry landscape and overcome operational hurdles.
The mining sector, in particular, presents a wealth of opportunities, and the ministry has identified over 100 initiatives and incentives designed to empower entrepreneurs and SME owners within this space.
This focus on creating a supportive ecosystem is intended to encourage more entrepreneurs to explore the untapped potential of the mining sector.
The initiatives are part of a broader strategy to cultivate a vibrant SME sector capable of contributing significantly to Saudi Arabia’s economic growth and diversification.
By providing the necessary tools, resources, and regulatory support, the government aims to harness the full potential of SMEs, ensuring they remain a driving force in the country’s industrial and economic development.
As Saudi Arabia continues to transform its economic landscape, the empowerment and growth of SMEs will remain at the forefront of this journey.