ENCOURAGING external investment, boosting transparency and growing the small business sector are three key steps in ensuring the success of the Vision 2030 strategy, according to experts speaking at the Euromoney Saudi Arabia Conference on Thursdday.

In his opening keynote interview, Eng. Ibrahim Al-Omar, governor of Saudi Arabian General Investment Authority (SAGIA), outlined some of the key steps the Authority is taking to stimulate foreign investment.

The authority has significantly simplified licensing processes in recent years and made review and approval processes more efficient. It is also working hard to increase transparency for investors. According to the Governor, more than 400 reforms have been identified, and almost 40 percent completed already.

“The Kingdom of Saudi Arabia has everything for an investor to succeed, but there is risk. SAGIA is developing an online portal to share all relevant information about investment opportunities, market information and incentives,” said Al-Omar.

In the day’s second keynote interview, Abdulaziz Al Rasheed, deputy minister for economic affairs, ministry of economy and planning, outlined steps being taken to ensure that economic growth delivers higher employment.

“The employment challenge is one of the most important issues facing the Kingdom of Saudi Arabia, and we are looking to resolve it in parallel with economic diversification. We are encouraging greater participation by women in the economy and are already seeing the number of women in work increasing,” he said.

Saudi Arabia’s SMEs General Authority (Monsha’at) was set up to facilitate access to funding, forge links with industry incubators and simplify complex regulatory and administrative procedures to foster a more business-friendly climate.

In a keynote interview, Eng. Saleh Al-Rasheed, governor of Monsha’at, said promoting a culture of entrepreneurship would be a priority for the Kingdom as it diversifies its economy.

“We need to create the right culture that enables venture capitalists and investors to support SMEs and start-ups,” said Al-Rasheed. “We have initiated several key initiatives to encourage the development of a start-up culture in Saudi Arabia.”

Encouraging the growth of SMEs is a top-level priority, and steps are being taken to provide small businesses with more opportunities to access national procurement and government bids.

According to panellists at the event, small- and medium-sized enterprises contribute just a fifth of GDP in the Kingdom, compared with as much as 70 percent in some advanced economies, reflecting the scale of the opportunity.

During a lively panel debate, some of the country’s most promising young business leaders shared their views on how the SME sector could be supported. They included Faris Ibrahim Alrashed, who founded Oqal Group, a social network that connects angel investors with budding entrepreneurs.

Another panellist, Zahra Al Mohanna, provides access to online counselling and life coaching via her platform YouPositive. They were joined by representatives from Alkhair Capital Saudi Arabia, Murabaha Capital and PayTabs.

The panellists debated the types of SMEs that were most in need of financing and considered how start-ups and small firms holding limited assets could go about attracting funding. They also discussed ways in which banks, finance companies and private equity funds could become more involved in the SME sector, and about developing a culture of venture capitalism in the Kingdom.

Another issue was how big business could lend its support to fledgling firms through knowledge sharing and mentorship.

More than 1,700 delegates registered this year to attend the Euromoney Saudi Arabia Conference, which was organized in partnership with Saudi Arabia’s Ministry of Finance. Held in Riyadh, it featured sessions with senior government ministers, and CEOs and executives from some of the world’s largest banks.

Victoria Behn, director – Middle East and Africa at Euromoney Conferences, said: “This year’s forum welcomed a host of influential figures from the spheres of finance, industry and government. It is a positive indicator that so many of them are so focused on the SME and start-up sectors of the economy, which have the potential to add significant social and financial dynamism.”

“We look forward to welcoming many more speakers and delegates to next year’s Euromoney Saudi Arabia Conference to see how the momentous changes sweeping the Kingdom are progressing,” she concluded.

The Euromoney Saudi Arabia Conference, organized in partnership with Saudi Arabia’s Ministry of Finance, will return to the Kingdom in 2019. — SG