RIYADH: On the first day of Biban 24, a total of 17 agreements and memorandums of understanding were signed, alongside the launch of financial initiatives valued at more than SR18 billion ($4.79 billion).
These deals and financing portfolios were finalized during the Riyadh event, organized by the General Authority for Small and Medium Enterprises under the theme “A Global Destination for Opportunities.”
The forum aims to empower small and medium enterprises and entrepreneurs by enhancing their access to financial support, ultimately fostering growth in this vital sector of the national economy, as reported by the Saudi Press Agency.
Monsha’at secured cooperation agreements with several leading local financial institutions, including Riyad Bank, which committed to a financing portfolio worth SR3 billion; Al-Rajhi Bank, with SR2.9 billion; and Bank Albilad, offering SR2.85 billion. Additional agreements were signed with Bank AlJazira for SR1 billion, Alinma Bank for SR800 million, and Banque Saudi Fransi for SR700 million.
A deal worth SR25 million was inked with Abdul Latif Jameel Co.
These efforts align with Monsha’at’s ongoing mission to strengthen the growth and competitiveness of SMEs by partnering with key players from various sectors, both locally and internationally.
The overarching goal is to create a conducive environment for growth and build a leading society. As of 2023, SMEs in accounted for 28.7 percent of the country’s total gross domestic product, reflecting an 8.7 percent increase from previous figures, and on target for the Vision 2030 target of 35 percent, according to data from Statista.
Several other announcements were made on the first day in the realm of financing and expanding support for projects.
The Saudi National Bank unveiled a financing portfolio of SR3 billion, while Saudi Awwal Bank announced a similiar initiative valued at SR1 billion. The Arab National Bank also announced an SR1.1 billion financing portfolio, along with the launch of an e-commerce financing product worth SR500 million.
Additionally, the Small and Medium Enterprises Bank revealed that it would allocate SR1 billion to finance SMEs in the fourth quarter of 2024.
This funding will be distributed through approved financing models in collaboration with various partner institutions. The bank also introduced a dedicated financing program for SMEs in the education sector, which was developed in partnership with the Ministry of Education and commercial banks.
Monsha’at also concluded several local and international agreements, including an MoU with the Korean Ministry of Small and Medium Enterprises and Korean startups to cooperate in the field of technical classification of SMEs, mainly in the financial technology sector.
Additionally, the program will support innovative projects in cooperation with major companies from both countries. This contributes to the exchange of knowledge and technology between the two sides.
The authority also signed an agreement with the Korean Franchise Association with the goal of facilitating the exchange of 50 brands between the two countries and providing the necessary support for the success of these brands in new markets.
The Korean Minister of Startups and Small and Medium Enterprises, Oh Youngju, said innovation knows no borders and that startups are shaping the world’s landscape, addressing the significant expansion of technology worldwide.
During her participation, she explained that 18 percent of venture capital funding was directed toward artificial intelligence, marking a significant technological shift. She underlined that European startups are leading this change by integrating generative AI into their operations.
The forum further witnessed the signing of a memorandum of cooperation between Monsha’at and SME Corporation Malaysia. The agreement aims to facilitate market access through various programs and services, promote knowledge exchange in innovation and entrepreneurship, and enable the sharing of franchise brands between the two parties.
A memorandum of cooperation was also signed with the Malaysian Franchise Development Co., also known as Bernas, to provide training programs and advisory services, participate in franchise exhibitions between the two countries, and exchange expertise related to studies and mechanisms.
The authority also collaborated with X Development to provide specialized training programs and innovative digital transformation solutions. Through this partnership, Monsha’at aims to equip entrepreneurs and SMEs with essential digital skills and knowledge to enhance their market competitiveness and adapt to rapid changes in the business landscape.
In terms of cooperation with Europe, the authority sealed an additional memorandum of cooperation with the Estonian Business and Innovation Agency to design three specialized educational programs in innovation and entrepreneurship.
This initiative focuses on high school and university students alongside training programs designed to enhance skills and competencies, contributing to accelerating the growth of emerging companies.
With regards to the Arab world, Monsha’at signed an MoU with Bahrain’s Labor Fund or Tamkeen.
The agreement aims to bolster economic, trade, and investment cooperation in the SME sector across both countries. This initiative will focus on collaboration in the Franchise Program, including facilitating the exchange of franchise brands for local and international expansion and fostering talent development and capacity building.
To further enhance investment opportunities, Monsha’at announced 10,000 investment opportunities in cooperation with the “Invest in Saudi” and “Forsa” platforms, in addition to partner entities like the National Center for the Non-Profit Sector and the “Nine Tenths” platform.
The opening day of the forum also saw the announcement that the Kingdom would host the finals of the Middle East and North Africa Startup Competition for the first time — in collaboration with the London Business School. The competition specifically targets startups in the region.
The Federation of Saudi Chambers and the Chambers of Commerce are participating in the forum activities through a pavilion at the exhibition accompanying the conference.
This participation reflects the important economic role played by the institutional bodies of the private sector in enhancing the nation’s position as an international destination for entrepreneurship.
The “Land of Opportunities” is one of the events hosted by Biban this year. It offers opportunities in asset investment, temporary leasing, direct leasing, and purchase, as well as operation, supply, and competition.
It represents an interactive space that encourages exchange and partnerships between investors and entrepreneurs, supported by close cooperation between the public and private sectors.
The Biban Talks Theater witnessed a series of sessions on its first day of the event. The discussions addressed various topics that shed light on AI, building the future, and enabling global capabilities. The theater also witnessed in-depth talks on development strategies for startups and small and medium enterprises, in addition to innovation in growth areas from idea to impact.
The Saudi Premium Residency Center announced that 38 entrepreneurs of 14 different nationalities received “Entrepreneur Residency” status during the Biban 24 Forum. The award aims to empower the sector, attracting and retaining entrepreneurs and investors worldwide to support a diverse, promising economy and enhance the Kingdom’s investment landscape.
