Saudi finance minister pledges support for SMEs

While major construction firms are important, KSA says SMEs are also vital to its economy. Photo: ITP

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KSA’s minister of finance Ibrahim Al-Assaf has pledged more support for small and medium enterprises as the nation embarks on its largest ever round of public and social spending.

Speaking during the Saudi Small and Medium Enterprises Forum in Riyadh on Tuesday, Al-Assaf said the conference coincided with a comprehensive program of economic development being undertaken by the government.

“I will talk directly on the loan program launched by the Ministry of Finance for small and medium enterprises in the Kingdom, including the government funds. We provide loans for education and health projects including small and medium enterprises as well as the educational sector. We also provide funds for big projects, including universities, colleges and hospitals as well as medical specialist complexes,” said Al-Assaf.

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The programme was launched in 2006, and Al-Assaf said the total funds extended to projects since its establishment amount to around SR5 billion. This is in addition to the Saudi Industrial Development Fund (SIDF) – established in 2011 - which also helps in financing SMEs.

SMEs in the country employ around 5m Saudi workers and account for around 22% of the national output. They also employ around 51% of the national workforce, with 40% of them employed in the construction sector.

"Our target in 2030 is to raise the role of SMEs to account for 33% of total national output and 57% for the Saudi workforce."