KSA Launches Program Encouraging Small & Medium Industrial Projects
The program has been supported by a substantial fund set aside by the Ministry of Industry and Mineral Resources.
The Ministry of Industry and Mineral Resources announced the launch of a business accelerator and incubator program, in an effort to strengthen Saudi Arabia’s industrial and manufacturing capabilities. Identifying 15 industrial projects, the program aims to encourage the nation’s entrepreneurs to develop solutions towards a more sustainable growth, with a focus on small and medium industrial projects.
Recognizing the importance of partnerships between public, private and non-profit sectors and international partners in achieving Saudi Arabia’s goals to diversify its economy, investments into small and medium enterprises (SMEs) forms a cornerstone of the Kingdom’s economic development policy. As part of the Kingdom’s Vision 2030, SMEs are targeted to make up 35% of Saudi Arabia’s GDP, a 15% increase from the current 20% contribution.
Traditionally, incubators focus on early-stage startups and accelerators target late-stage startups. The program will deliver a holistic approach by gathering industry system resources, together with university flagship programs, government agencies, and some of the Kingdom’s leading industrial players. As per government records, recorded on the Kingdom’s Vision 2030 website, more than 892,000 SMEs have been registered in the Kingdom since 2016, with government support of innovation and entrepreneurship in providing indirect funding totalling over $695 million over the last given years.
The program has been supported by a substantial fund set aside by the Ministry of Industry and Mineral Resources, alongside financial investors, and international incubator and accelerator networks with the intention of creating a base of innovative and competitive small and medium-sized enterprises. This sustained focus on industrial growth is part of KSA’s long term plan of increasing private sector contribution to national GDP to 65%, as relayed in the Kingdom’s Vision 2030 plan. Economic reforms are underway in facilitating a supportive business environment and enhancing efficiency and sustainability as factors to long term growth.