Saudi Arabia launches SAR 2.8 bln venture capital initiative

Small and Medium Enterprises General Authority (Monsha’at) and the Local Content and Private Sector Development Unit (Namaa) have launched a venture capital initiative worth SAR 2.8 billion.

The initiative is part of Monsha’at and Namaa’s private sector stimulus program, Monsha’at deputy governor Mohammed Al-Malky told Al Arabiya channel.

The initiative will be implemented through three main programs including the start-up investment program, investment funds’ program and investment programs conducted in partnership with the private sector, he said.

The program targets several segments, such as the investment program in start-ups which was recently launched in partnership with Aramco’s entrepreneurship arm Wa’ed, Business Incubators and Accelerators Co. (BIAC), OQAL Investment Group, and Wadi Jeddah Ventures (WJ).

The initiative focuses on investing at early stage and filling the financing gap currently facing SMEs, he said.

The step aims to increase private equity funds and venture capital, and to support start-up financing in Saudi Arabia.

It will also help provide financing solutions for SMEs in order to raise their contribution in the Kingdom’s gross domestic product (GDP) to 35 percent from 20 percent by 2030.