RIYADH: Entrepreneurs and owners of small and medium enterprises in Saudi Arabia are set to have enhanced access to financing solutions thanks to a new agreement.
The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, has signed a memorandum of understanding with Riyadh-based investment firm Sukuk Capital to boost funding opportunities in the sector.
The new financing solutions are expected to elevate the capabilities of industrial plants to achieve targeted growth.
The new MoU will also help create an attractive environment for investments in line with the Kingdom’s National Industrial Strategy, in addition to the Vision 2030 initiative, which seeks to diversify Saudi Arabia’s economy away from oil.
According to the CEO of MODON, Majid bin Rafid Al-Arqoubi, the partnership comes within the framework of the authority’s initiatives to enhance the financial sustainability and stability of the private sector.
It also comes within MODON’s objective to provide technical assistance programs for entrepreneurs and owners of SMEs in order to support the national economy, Al-Arqoubi highlighted.
Furthermore, the new solutions aim to stimulate the productivity of factories while creating economic opportunities and directing the energies of young people to innovative projects with high growth, the CEO explained.
Under the terms of the agreements, partners are projected to benefit from a variety of financial solutions with short-, medium- and long-term effects.
They are also set to gain from flexible payment schedules which contribute to increasing collection efficiency.
The SME sector is perceived as a vital economic engine, a key generator of new employment and the foundation of the global economy, Senior Vice President of technical services at Aramco Ahmad Al-Sa’adi said in an exclusive interview with Arab News in 2022.
Under the Vision 2030 goals, the SME sector is earmarked to contribute 35 percent to the Kingdom’s gross domestic product by 2030.
In addition to this, SMEs are set to play a significant role in achieving Saudi Arabia’s objectives of lowering the unemployment rate from 11.6 percent to 7 percent, and increasing women’s participation in the workforce from 22 percent to 30 percent.