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Arab News
29-04-2025
- Business
- Arab News
Saudi Arabia, Azerbaijan sign SME deal to strengthen trade ties
RIYADH: Saudi Arabia and Azerbaijan have signed a comprehensive agreement focused on strengthening economic collaboration through the development of small and medium-sized enterprises, in a move that underscores both nations' commitment to enhancing bilateral trade and investment. The memorandum of understanding was formalized during the 8th session of the Saudi-Azerbaijani Joint Committee, held in Riyadh. It was signed between Saudi Arabia's Small and Medium Enterprises General Authority, known as Monsha'at, and Azerbaijan's Small and Medium Business Development Agency, known as KOBIA. The SME agreement aligns with Saudi Arabia's Vision 2030 strategy, which prioritizes economic diversification and entrepreneurship. For Azerbaijan, it marks another step in forging strategic partnerships in the Gulf region to bolster private-sector growth and create new market opportunities for innovative enterprises. In a statement posted on X, Monsha'at said: 'In the presence of H.E Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, and the Deputy Prime Minister of the Republic of Azerbaijan, Samir Sharifov, Monsha'at, signed a MoU with 'KOBİA' Agency, as part of the 8th session of the Saudi-Azerbaijani Joint Committee activities, to strengthen cooperation in supporting the SMEs and entrepreneurship's growth between the two countries.' The agreement encompasses a broad range of initiatives, including knowledge exchange, joint training programs, and support for technical innovation. It also promotes investment opportunities, cross-border partnerships, and institutional collaboration through exhibitions and shared platforms. Saudi Arabia and Azerbaijan come together at the 8th Session of the Joint Commission between the two nations to unlock new investment opportunities, strengthen economic ties, and drive future collaboration across key sectors. — INVEST SAUDI (@InvestSaudi) April 29, 2025 In a separate announcement, the Saudi Ministry of Investment revealed the signing of two additional memorandums of understanding between private-sector companies from both countries. 'These agreements cover the development of maritime infrastructure and the establishment of industrial and medical facilities in the Kingdom, including the production of biotechnology and oncology medicines, the establishment of research and development centers, and infrastructure for re-export warehouses,' the Ministry noted in a post on X. The joint committee also reviewed a series of potential joint ventures aimed at strengthening cooperation across mutually beneficial sectors. These initiatives are closely aligned with both countries' long-term goals for economic diversification. Officials from Saudi Arabia and Azerbaijan emphasized the importance of fostering dynamic SME ecosystems as engines of job creation, innovation, and global competitiveness. By aligning policy frameworks and enabling institutional collaboration, the two nations aim to unlock greater private-sector engagement and regional trade expansion.
Zawya
29-04-2025
- Business
- Zawya
Saudi: Monsha'at signs deal with Azerbaijan's Small, Medium Business Development Agency
Riyadh -- The Small and Medium Enterprises General Authority (Monsha'at) today signed a memorandum of understanding with Azerbaijan's Small and Medium Business Development Agency (KOBIA), aiming to boost economic, trade, and investment cooperation in the field of SMEs and to help improve their competitiveness in global markets. Minister of Investment Khalid Al-Falih, Monsha'at Governor Sami bin Ibrahim Al-Hussaini, and KOBIA Chairman Orkhan Mammadov attended the signing ceremony, organized in conjunction with the Saudi-Azerbaijani Committee meetings. The memorandum seeks to exchange knowledge and expertise between the two sides to enhance institutional infrastructure and develop SMEs. It also aims to organize business visits to strengthen trade relations among SMEs in the two countries by providing information on relevant business opportunities and supporting the organization of training and educational programs related to the sector and associated institutions.
Leaders
15-04-2025
- Business
- Leaders
Biban24 Secures MUSE Creative Award as Best Event in Entrepreneurship Category
The Biban24 Forum has secured the MUSE Creative Award for the Best Event in the Entrepreneurship category for 2024, according to the Saudi Press Agency. This recognition stands as a living proof of the forum's crucial role in empowering entrepreneurs and supporting businesses. Biban24 Forum Biban24 serves as a significant platform for entrepreneurs to launch their ventures and bolster the Kingdom's business environment. The forum basically aims to shed light on Saudi Arabia's entrepreneurial zeal and its pioneering presence at local, regional, and global levels. Monshaat Organized by the Small and Medium Enterprises General Authority (Monshaat), the forum represents one of the world's most pioneering events in the entrepreneurship sector. In this regard, Monsha'at emphasized that the event has set a priority to attract leading small and medium enterprises to the Kingdom's unique investment environment. Therefore, Biban24 has further positioned Saudi Arabia as a global prestigious hub embracing investment opportunities and initiatives. 'With Saudi Arabia continuing to serve as a gateway to a rich range of possibilities in a diversity of markets, Biban24 Forum provides investors from the region and around the world a timely platform to explore new and emerging opportunities with the potential to boost their business prospects significantly. Fostering an enabling environment conducive to collaboration, the meaningful exchange of ideas, and innovation, the conference is set to bring even more budding and established entrepreneurs, startup founders, and leaders together to bolster the regional and global SMEs ecosystem, creating a more prosperous future for all,' Sami Ibrahim Alhussaini, Monsha'at's Governor, said. Biban24 has launched various initiatives and signed agreements surpassing SAR35.4 billion, along with the participation of more than 1,350 startups from 72 countries around the world. Related Topics: Biban24 Forum Concludes with SAR 35.4bn Worth of Agreements Biban24 Forum Wraps Up with World Cup Qualifiers Mosha'at's Virtual Lab: Empowering Entrepreneurs at Biban24 Short link : Post Views: 21
Arab News
07-03-2025
- Business
- Arab News
Franchises boosting Saudi economy, as Kingdom dominates half of MENA's $30bn market
JEDDAH: Franchises are proving increasingly vital to Saudi Arabia's economic development, driving employment, government revenue, and cultural transformation in a youthful nation. Economic experts have told Arab News that the introduction of a law in 2019, followed by expansion of regulations the following year, helped open the Kingdom up to international businesses, as well as strengthened the relationship between franchisors and franchisees. These moves, together with the economic expansion of Saudi Arabia as part of the Vision 2030 initiative, means the Kingdom now accounts for nearly half of the $30 billion franchise market in the Middle East and Africa, according to Yaseen Ghulam, associate professor of economics at Riyadh-based Al-Yamamah University. He told Arab News there is consensus among researchers and industry observers that franchise businesses are expected to grow by more than 20 percent per annum for the coming five years and beyond. 'This presents an exceptional opportunity for international brands to enter the Kingdom through franchising, given the fact that European and North American consumer markets are struggling due to economic uncertainty, unemployment, and higher cost of living,' Ghulam said. He added that franchise registrations in the Kingdom stood at 1,788 by the end of the third quarter of 2024, up from just 185 three years earlier. With 1,232 entries, the accommodation and food services sector — which includes lodging facilities, dining establishments, and enterprises associated with tourism — led the registrations, the associate professor said. He added that the wholesale and retail division came in second with 689, and the transport and storage sector with 257. An important element of this development, he noted, is more widespread activity, covering almost all major cities, rather than clustered around one particular region or sector. 'With 647 franchise registrations, Riyadh has led the field, followed by Makkah with 363, and the Eastern Province with 225. According to some estimates, over 1,200 brands are available for franchising, and the franchising sector in Saudi Arabia is offering over 10,000 business opportunities.' Ghulam noted that more than 600 international and 380 local franchise brands are present in the Kingdom, according to the Small and Medium Enterprises General Authority, known as Monsha'at. Abdullah Al-Maghlouth, a member of the Saudi Economic Association, told Arab News that government support for SMEs through streamlined processes and a business-friendly environment has helped drive the franchise sector. He added that the 2019 law bolstered the Kingdom's business ecosystem, attracting local and international investments through a clear legal framework. 'The 2020 executive regulations complement this by providing a comprehensive legal environment that facilitates franchise operations and ensures guarantees for all parties involved. This enhances transparency between franchisors and franchisees, making the Saudi market increasingly appealing to investors,' Al-Maghlouth said. Reflecting on the key factors driving growth in the sector in the Kingdom, Ghulam said Monsha'at's Franchise Center is 'aggressively advancing entrepreneurship' through different programs, such as Tomoh. He added that trademarks are now fully protected thanks to the Kingdom's recent successful implementation of an intellectual property rights plan, with online portals making trademark registration and protection simple and accessible. Financial guarantees provided by the Kafalah program are also proving to be a factor in sourcing finance from local investors, Ghulam said, and he noted that the Social Development Bank has played a significant role in advancing franchising in the Kingdom. The institution provides financing solutions ranging from SR150,000 ($40,000) to SR4 million with a maximum financing length of 8 years as part of its program to assist new franchise developments and expansion. 'Another significant step in bolstering the franchise community is the founding of the Saudi Franchise Association, the Kingdom's first specialized association. It has worked to promote the idea and culture of business excellence since its foundation. Additionally, it has organized numerous seminars and workshops and signed various partnerships with colleges and chambers of commerce,' said Ghulam. Arrangements are also in place in Saudi Arabia to support franchise business and provide consulting. For both domestic and international businesses, Arab Franchise Marketing Corporation provides media platforms, administrative and legal services, and new franchise opportunities. 'Through useful solutions, they work with a profit system to grow the franchise market in the MENA area, especially in Saudi Arabia,' said the associate professor. Highlighting how Saudi Vision 2030 has influenced the development of the franchise market, Ghulam said that the objectives of Saudi Arabia's Vision 2030 are to invest in globally competitive industries, diversify the country's economy, boost the private sector, and create jobs. 'Following this, one important economic area that is highlighted in Vision 2030 is franchising. For the success of the Vision, a comprehensive legal, regulatory, financial, and economic set up was needed and has been established for the promotion of the private sector to diversify the economy and reduce dependence on the oil sector,' he said. The development, he added, of the basic and changed framework has indeed helped the private sector grow in the last few years. Ghulam said that the franchising industry has greatly benefited from Vision 2030, with support mechanisms, new institutions, and financial aid serving as key enablers. He added that investment in mega projects, sports events, and facilities has created youth employment, raised real wages, and driven demand for sectors like education, health, dining, beauty, and fitness. This has attracted international franchisors and local investors, fueling significant growth in the sector. Ghulam emphasized that Vision 2030 has also shifted the mindset of Saudi youth, encouraging private sector roles and self-employment through franchising, offering substantial returns on investment. He advised foreign brands seeking to expand into the Saudi franchise market that there is significant potential in sectors such as food, retail, and education, as well as health, fitness, and sports. 'More specifically, customers are quite fond of education franchises, including both domestic and international franchises that focus on training, early childhood care, development centers, and tutoring,' Ghulam said. He continued that Saudi Arabia's focus on health-related industries has driven high demand for gyms, nutritious food franchises, and medical services, adding that loosened social regulations, particularly for women, and government support for regional designers have boosted the retail sector, particularly fashion. Al-Maghlouth agreed that beyond traditional sectors like tourism, hospitality, and food, the Saudi franchise market will continue to expand into emerging fields such as technology, education, and healthcare. 'The supportive legal framework will continue to enhance market transparency and drive growth in economic activities, fostering a sustainable investment environment. This will not only benefit all stakeholders but also solidify Saudi Arabia's position as a leading investment destination in the region.' he said.
Zawya
03-03-2025
- Business
- Zawya
Saudi Monshaat: 67% increase in commercial registrations during Q4 2024
RIYADH — There has been a 67 percent increase in commercial registrations, bringing the total number to 1.6 million during the fourth quarter of 2024. According to the quarterly SME Monitor Report released by the Small and Medium Enterprises General Authority (Monshaat), the majority of these registrations were concentrated in Riyadh, accounting for 39 percent, followed by Makkah with 17 percent, the Eastern Province 16 percent, Qassim 6 percent, and Asir 5 percent. The remaining 17 percent were distributed across other regions. The current edition of the report focuses on sustainability and key trends adopted by SMEs, including the circular economy, renewable energy, reforestation, major environmental projects, environmental tourism development, and the adoption of electric vehicles. It also highlights collaboration with government initiatives and contributions to sustainability reports. The report opens with a statement by Rakan Alsheikh, deputy minister for Policies and Economic Planning at the Ministry of Economy and Planning, who discussed the Sustainability Champions Program launched by the ministry. The program aims to enhance the exchange of knowledge and best practices between large companies and SMEs, ensuring that small businesses benefit from the expertise of leading sustainability companies. He emphasized the importance of empowering SMEs to seize emerging opportunities in renewable energy, green technology solutions, and circular economy initiatives. The report also highlights expert insights and success stories in sustainability, including interviews with officials from various companies and entrepreneurship experts. The report provides data on the beneficiaries of Monshaat's programs and services up to the end of fourth quarter of 2024. More than 51,000 individuals have benefited from the Monshaat Academy, 41,076 SMEs accessed the authority's support centers, and nearly 6,100 beneficiaries used the Mazaya platform. Furthermore, 2,100 small and medium enterprises qualified for the Jadeer service, 4,258 benefited from innovation centers, and 205 trademarks were listed on the authority's Franchise Center platform. The SME Monitor Report is part of a series of quarterly reports issued by Monshaat, covering the latest updates on the entrepreneurial environment, statistics, and figures, along with specialized reports on topics of interest to entrepreneurs in the Kingdom. The reports serve as a reliable reference for entrepreneurs, investors, and stakeholders, the Saudi Press Agency reported.
