BUSINESS

Five Saudi ministers review procedures to support SMEs

September 20, 2017
Ministers and Monsha'at governor during a tour at BIBAN 2017
Ministers and Monsha'at governor during a tour at BIBAN 2017

RIYADH — The first day of "BIBAN 2017" Conference and Exhibition, which was launched by the Small and Medium Enterprises General Authority at the Riyadh International Convention and Exhibition Center on Sunday, witnessed interactive sessions that discussed supporting aspects and growth rates of SMEs in the Kingdom. The gathering will end on Sept. 20.

Th Trade and Investment Minister Dr. Majid Al Qasabi, Governor of the Small and Medium Enterprises General Authority Ghassan Al Sulaiman, Communications and Information Technology Minister Eng. Abdullah A. Al-Sawahah and Labor and Social Development Minister Dr. Ali Al Ghafees participated in a session entitled "the Government role to empower SMEs in Saudi Arabia"

The Small and Medium Enterprises General Authority Governor Ghassan Al Sulaiman stressed the importance of entrepreneurship due to its vital role to develop the national economy.

He pointed out that the percentage of SMEs amounted to 99.2% of the private sector companies in the Kingdom. This is the same percentage in the European Union, Canada and Malaysia.

"SMEs’ contribution of to support economic growth in Saudi Arabia is still limited with only 22 percent, while in Europe it is 77 percent and 65 percent in Malaysia. SMEs’ exported products in Saudi Arabia is also only 3%,” he said.

Saudi Arabia aimed to be 15th in the world by 2030 with SMEs’ contributions would reach $2.2 trillion,

Al-Sulaiman said that 26 projects were launched on the sidelines of “BIBAN 2017, in addition to what were previously launched.

"Our ongoing work will help to find special solutions for the two biggest challenges, finance and government procedures," he added.

Trade and Investment Minister said Social Insurance Fund will bear the costs of self-employed.

Al-Gosaibi highlighted his ministry's experience in reducing routine procedures in business environment and developing procedures to support SMEs in the Kingdom. He also praised Tayseer initiative, which was launched by the Council for Economic and Development Affairs.

He clarified that the measures which were taken by Meras Initiative aims to improve the private sector’s performance and facilitate procedures to start business by providing related services to investors.

"We will register free and part-time employers with social insurance. The social insurance fund will pay all the costs of the self-employed in case of registration," said Dr. Al-Gosaibi.

Minister of the Municipal and Rural Affairs Eng. Abdullatif Al Al-Sheikh said that his ministry considers SMEs as "an important part in supporting the growth of the Saudi economy," pointing out that the time came to expand the SMEs’ role.

Al Al-Sheikh highlighted his ministry’s experience in supporting the concept of entrepreneurship in the business field as well as the need to facilitate the administrative procedures for SMEs.

The minister also revealed that Baladi platform has been electronically linked with the Meras platform to enable the access of entrepreneurs and investors to the municipal sector via the “Maras platform”, which is managed by the Ministry of Trade and Investment.

Al Al-Sheikh said "we are participating in "BIBAN 2017" with more than 200 investment opportunities for SMEs”.

Labor and Social Development Minister Ali bin Nasser Al Ghafees said “we financed 40,000 SMEs with SR6 billion”.

He highlighted his ministry's ongoing efforts to enhance the relationship with SMEs in various tracks, including the "Free Labor Track, the Path Payroll, the Path of Emerging Projects, "Ageer" system which provides an attractive environment for free work to SMEs, and other tracks.

During his participation in “BIBAN 2017”, Minister of Communications and Information Technology Eng. Abdullah Al-Sawahah launched a digital platform to serve young entrepreneurs

Al-Sawahah said: “The ministry is working in two phases to support the growth of SMEs in the Kingdom, building phase and digital transformation phase.”

He pointed out that the building phase aims to exploit the young energies, while the digital transformation is based on the elements of "youth" and "data". He stressed the importance of integration to ensure the growth of the SME sector. — SG


September 20, 2017
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