Monshaat to continue giving SMEs refunds on govt fees until 2021, says official

Saudi Arabia’s Small and Medium Enterprises General Authority (Monshaat) will continue to give small and medium enterprises (SMEs) refunds on government fees until 2021, Monsha’at deputy governor Mohammed Al-Malky told Argaam in an exclusive interview.

Here’s the full interview:

Q: Would you introduce Biban Forum’s format and objectives?

A: Biban aims to create a suitable business environment for SMEs that ensures their sustainability and growth. It supports entrepreneurs and new businesses by helping them with a smooth setting-up process. It also introduces ways to attract investors, regulatory procedures and offers consultation in order to help businesses achieve success.   

Q: Would you tell us more about the refund of government fees initiative?

A: Monsha’at and the Local Content and Private Sector Development Unit (Namaa) have launched the SAR 7 billion initiative to refund SMEs for the government fees they had paid in installments over three years. We despised the first installment on Sept. 3, 2018, while the second was paid on Oct. 8. The third and fourth will be paid in November and December.

Eligibility conditions include being a company that launched business in 2016 and has revenues not exceeding SAR 200 million a year. Forms will be refunded 80 percent of the fees paid for the maximum of 20 expat workers (without their families).

Q: How successful was the in-direct lending and what does it provide?

A: The in-direct lending initiative provides financing solutions to SMEs in partnership with eight financing companies. I am glad to reveal exclusively to Argaam that we’re about to finalize deals with five more financing firms. The initiative came to fill a funding gap for SMEs that don’t have an equal funding opportunity. They will be given competitive advantages.

Q: During our tour in Biban Forum 2018, we noticed the venture capital pavilion. Would you talk to us about it?

A: The venture capital initiative aims to attract investments to early stage companies. It 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. 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).

We aim to raise SMEs’ contribution in the Kingdom’s gross domestic product (GDP) to 35 percent from 20 percent by 2030.

Q: What about Kafalah program and through which lenders does the program provide funding to SMEs?

A: The Kafalah Program has been restructured and its capital has been increased nine-fold to SAR 1.8 billion. It used to offer one product, now it is offering five credit products. Also, it used to work with banks only, now it started to work with registered financing firms as well, in order to facilitate finance to SMEs.

Q: Last, tell us more about Biban Forum 2018 in Makkah?

A: The forum presented several training programs on starting-up, scaling-up and innovation, among others. The attendees could see the government’s role in empowering and supporting SMEs. The forum has attracted 17,500 visitors on its first day, and it’s expected to see around 80,000 visitors throughout.