Latest news with #Monshaat
Argaam
23-07-2025
- Business
- Argaam
Licensed foreign startups rise to 550 by mid-2025 in Saudi Arabia
The number of foreign startups licensed under the Entrepreneur license by the Ministry of Investment (MISA) in Saudi Arabia increased to 550 by mid-2025, marking a 118% growth compared to mid-2024. According to the Saudi Press Agency (SPA), the Small and Medium Enterprises General Authority (Monsha'at) issued 364 licenses for business incubators and accelerators across the Kingdom. The Entrepreneur license, issued by MISA for startups, is one of the Ministry's key initiatives designed to empower stakeholders within the entrepreneurship ecosystem. It enables both international and local entrepreneurs to easily establish their ventures in partnership with partners from around the world.
Zawya
21-07-2025
- Business
- Zawya
Foreign startup licenses in Saudi Arabia surge 118% to 550 by mid-2025
RIYADH — The number of foreign startups licensed under Saudi Arabia's "Riyadi" initiative has reached 550 as of mid-2025, marking a 118% increase compared to the same period last year, according to the Ministry of Investment. This surge comes as part of national efforts to position the Kingdom as a regional hub for entrepreneurship by facilitating international startup entry and creating a flexible regulatory environment that fosters innovation and attracts investment. The General Authority for Small and Medium Enterprises (Monsha'at) has also issued 364 licenses for business incubators and accelerators across the country. These entities have played a vital role in attracting international entrepreneurs and supporting their growth journey — from early prototyping and mentorship to investor and market access — enabling them to launch effectively in the Saudi market. Flagship international events hosted in the Kingdom, such as Biban and LEAP, have further drawn global founders by showcasing Saudi Arabia's dynamic entrepreneurial ecosystem and investment opportunities. Additionally, the active participation of Saudi stakeholders in global forums like Web Summit, Vivatech, and Slush has enhanced international networking and promoted the Kingdom as an attractive destination for startup activity. The "Riyadi" license (Startup Investment Registration) is one of the Ministry of Investment's key initiatives, designed to empower international and local entrepreneurs to establish ventures easily with partners from around the world. The initiative supports Saudi Arabia's broader objectives of economic diversification, innovation, and embedding a culture of entrepreneurship. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
21-07-2025
- Business
- Arab News
Foreign startup registrations in Saudi Arabia rise 118%
RIYADH: Saudi Arabia's Ministry of Investment has granted 550 foreign new ventures the Startup Investment Registration, known as the Riyadi license, as of mid-2025, marking an annual rise of 118 percent. The Small and Medium Enterprises General Authority, known as Monshaʾat, has issued 364 licenses to business incubators and accelerators nationwide, according to a report by the body. Monshaʾat said these entities provide facilities for prototype development, mentorship, and connections to investors and commercial partners. The increase in Riyadi registrations aligns with the Kingdom's surge in venture capital activity. According to regional platform MAGNiTT, Saudi Arabia led MENA VC funding in the first half of 2025, with $860 million raised, representing a 116 percent annual increase across 114 deals. This marked a 31 percent rise in deal count compared to the same period in 2024. This momentum built on a record 2024 performance, when startups in the Kingdom secured $750 million in funding and saw a 34 percent increase in early- and mid-stage 'MEGA' rounds below $100 million. 'This increase forms part of joint national efforts to reinforce the Kingdom's role as a regional hub for entrepreneurship by streamlining market access for foreign startups and establishing a flexible regulatory environment that supports innovation and attracts investment,' Monsha'at's report said. According to the Ministry of Investment, this trend reflects growing international interest in Saudi Arabia's investment environment, underpinned by recent legislative changes, expanded digital infrastructure, and a range of support programs introduced in line with the objectives of Vision 2030. Saudi organizers have hosted international startup events, including Biban and LEAP, which feature presentations on the local ecosystem and investment opportunities. Government agencies and private-sector representatives have attended overseas gatherings, such as the Web Summit, VivaTech, and Slush, to facilitate networking with foreign entrepreneurs and promote the Kingdom as a potential base for regional operations. In addition to the Riyadi permit, the Ministry of Investment will issue a full suite of eight sector-specific business licenses, designed to accommodate virtually any foreign investor's needs. These include service licenses, which permit 100 percent foreign ownership for activities such as IT, consulting, marketing, and hospitality; entrepreneurial authorizations that offer streamlined fees and access to government-led support for startups; and industrial licenses for establishing manufacturing facilities. Specialized agricultural permits cover crop cultivation and animal husbandry, while trade licenses authorize wholesale, retail and import-export operations. Additional categories encompass real estate licenses for development and brokerage projects, professional permits for individual practitioners and solidarity firms, and mining licenses for exploration and extraction activities. Each permit carries tailored minimum-capital requirements and documentation processes, but all are obtainable through MISA's online portal, which centralizes application, approval and renewal under a unified regulatory framework.
Arab News
17-07-2025
- Business
- Arab News
Saudi MSME lending surges 31% in Q1 amid digital optimism and financial reform
RIYADH: Saudi Arabia's lending to small, medium, and micro enterprises rose by 31 percent year on year in the first quarter of 2025, according to recent data from the Saudi Central Bank. The total value of facilities reached SR383.2 billion ($102.18 billion), up from SR293.43 billion in the same period last year. Of this, 95.12 percent was disbursed by banks, while the remaining 4.88 percent came from finance companies, highlighting the formal sector's growing involvement in SME credit provision. Medium-sized companies — defined as those with revenues between SR40 million and SR200 million and 50–249 employees — accounted for the largest share of loans, receiving SR190.18 billion. Small enterprises followed with SR139.6 billion, while micro-enterprises received SR53.43 billion. Notably, micro-enterprises saw the fastest growth, with loan volumes surging by 82 percent year on year, compared to 35 percent for small enterprises and 18 percent for medium-sized firms. The lending boom reflects the expanding role of SMEs in Saudi Arabia's economic diversification strategy under Vision 2030. Monsha'at, the General Authority for Small and Medium Enterprises, has played a pivotal role through programs like Kafalah — a loan guarantee initiative designed to de-risk lending to SMEs by assuring a portion of the loan value to participating financial institutions. This has been instrumental in extending access to credit, particularly for micro and first-time borrowers. Despite rising loan volumes, credit access remains a structural challenge. According to the World Bank, SMEs across the Middle East and North Africa region receive only 8 percent of total bank credit, compared to 22 percent in high-income economies. In Saudi Arabia, SMEs accounted for just over 9 percent of total loans in 2024 — far below the Vision 2030 target of 20 percent. New players are helping bridge the gap. Saudi-based fintech platform Erad recently raised $16 million in a pre-Series A funding round to expand its Shariah-compliant, data-driven SME financing offering, according to Wamda in April. The company, which provides funding in as little as 48 hours, says over 60 percent of its clients are first-time credit takers. Since launch, it has processed more than SR100 million in funding and received over SR2 billion in applications, underscoring pent-up demand for fast, flexible finance. Meanwhile, digital optimism among Saudi entrepreneurs is on the rise. According to the 2025 Mastercard SME Confidence Index, 93 percent of surveyed SMEs expressed confidence in the year ahead. The adoption of digital payments has risen sharply, with 99 percent now accepting them, up from 88 percent in 2023. SMEs cited faster access to revenues, enhanced credibility with financial institutions, and more streamlined transactions as key benefits. Data and AI are also seen as enablers of smarter, more inclusive lending. Nearly 97 percent of surveyed SMEs said better data and analytics tools were essential to scaling operations. A growing number are prioritizing AI, automation, and cybersecurity in their growth strategies — trends that align with broader efforts to digitize financial infrastructure. Lending models must evolve alongside SME needs. Traditional bank lending often requires fixed-asset collateral and extensive documentation, limiting access for tech-oriented or service-based SMEs, according to a June article by International Banker. Risk assessment remains based on backward-looking financials, rather than dynamic indicators like sales or payroll data. Fintechs like Erad are disrupting this model by using real-time revenue data to underwrite loans. Globally, the credit gap for SMEs stands at $5.7 trillion, with Gulf Cooperation Council countries accounting for roughly $250 billion of that, according to International Banker. Saudi Arabia's efforts to close this gap are gaining momentum. In addition to loan guarantees and fintech innovations, open banking frameworks, SME-focused digital banks, and embedded finance models are helping to lower access barriers. Vision 2030 sets a clear target: raise SME contribution to GDP from 30 percent to 35 percent. With over 1.8 million SMEs now operating in the Kingdom, financial empowerment of this sector is not just a policy goal — it is a macroeconomic imperative. The path ahead will require deeper ecosystem alignment, tailored credit models, and continued innovation. But the first quarter of 2025 has already signaled a strong start — one that reflects both institutional commitment and entrepreneurial momentum across the Kingdom.
Argaam
12-05-2025
- Business
- Argaam
Past years witness strong efforts to boost new listings: Elkuwaiz
Mohammed Elkuwaiz, Chairman of the Capital Market Authority (CMA), said past years have seen major efforts to promote listings on the Saudi financial market and expand funding options for small and medium enterprises (SMEs). Speaking at the 'Enterprise Support Council' during 'Finance Week' hosted by Monshaat, he said SMEs now make up 30% of listed companies. After expanding their businesses, 14 of these moved from Nomu to the main market, demonstrating the CMA's ability to create an atmosphere that is conducive to investment. Elkuwaiz noted that Saudi companies now have access to nine financing channels, most of which were developed in recent years, describing Nomu's launch as a key reform to attract more companies to the market, the Saudi Press Agency (SPA) reported. Since its launch, Nomu's main index has grown tenfold. Market capitalization jumped 26x to nearly SAR 60 billion by the end of last year. Liquidity also rose significantly, with 2024 trading value reaching SAR 14 billion, eight times higher than earlier levels. The CMA reviewed all listing and offering requirements to align with global standards. It introduced direct listings and worked with regulators to ease rules, helping SMEs access the market more efficiently. He said the CMA, alongside other agencies, launched over 14 incentives to support listings and new IPOs, including changes to government procurement laws, credit rating frameworks, and evaluation processes for listed firms. Fintech has become a key player in the capital market. Sector revenues surged 105% in 2024 versus 2023, he added. Elkuwaiz stressed the importance of credit ratings, especially for debt-based financing, as vital tools to support market growth and sustainability.
