Minister of Finance Ibrahim Al-Assaf said the participation of small and medium-sized companies in the national economy is below average. “These establishments are still owned by expatriates, which confirm that we still have a long way to go before these establishments can have an active contribution to employment and the domestic national product. We need to push these establishments to be owned and managed by nationals,” he said.
Following the opening of a workshop about the work of small and medium establishments in Riyadh on Tuesday, Al-Assaf said this workshop is part of the G20 working program. It aims to research obstacles and opportunities of small and medium establishments.
The minister said in a speech that the global economy is showing some signs of recovery following the financial crisis of 2008 and 2009. However, unemployment levels are too high in most countries, with a few exceptions.
“Technical development is partly responsible for this unemployment, because technology has replaced the human cadre in certain industries and services. However, this doesn’t mean that new developments and technologies shouldn’t be adopted, but there should be serious efforts at finding new job opportunities. There should be more support for small and medium-sized establishments, and stronger funding opportunities. The business environment should be improved to strengthen these establishments’ role in the national economy, because small and medium-sized establishments are a rich source of employment opportunities, income, consumption and growth,” he said.
SMEs still run by foreigners
