Saudi Arabia recently launched a groundbreaking initiative aimed at reducing investment risk for foreign small and medium-sized enterprises (SMEs). The programme, under the Standard Incentives for the Industrial Sector, aims to increase the Kingdoms appeal to European SMEs. Furthermore, it`s part of the broader Saudi Vision 2030 plan to diversify the Saudi economy and enhance its industrial competitiveness.
Extended Opportunity for European S.M.E`s
For European SMEs, this announcement represents a valuable opportunity to expand into one of the fastest-growing global markets. Currently, European SMEs, which account for 99.8% of all enterprises in the non-financial sector in the EU, employ 88.7 million people and contribute more than 50% of Europe’s GDP.
>The Saudi programme offers a new frontier for European SMEs and creates a business-friendly environment that aligns with both Saudi Vision 2030 and the EU’s objectives for SME internationalisation.
Removing Barriers to Entry
Most importantly, the Saudi initiative focuses on reducing barriers for foreign SMEs and integrating them into the local industrial ecosystem. Through incentives, the Kingdom aims to attract quality investments and enhance its position as a business hub. Over the past two years, it has formalised these efforts through the establishment of Special Economic Zones, a National Incentives Committee and a new investment law, presenting significant opportunities for investors.
Lowering Investment Risks
The programme addresses primary concerns of SMEs by lowering investment risks, strengthening supply chains and facilitating collaboration with local companies. This strategic alignment with EU priorities and global trade partnerships further enhances the appeal of the Saudi market. As a result, it is poised for significant growth in sectors such as renewable energy, digital technologies, manufacturing and tourism. Saudi Arabia’s initiative aligns with both the Saudi Vision 2030 and the EU’s objectives for SME internationalisation, presenting a promising pathway for European SMEs to expand their global footprint.
Learn More About Company Formation in Saudi Arabia
Soutien Group is part of a network of consultants, partners and investors. Our clients are corporate, private and international with an interest in exploring new markets. We can offer expertise in Market Research and Assessment Saudi, Saudi Business Case, Saudi Business Model Development, Feasibility Study and Business Plan Saudi, Organizational and Operational Structuring Saudi, Saudi Sponsorship and Partnership, Company Formation Saudi among others.
Please click on the link to learn more about opportunities and possibilities in the Kingdom of Saudi Arabia as well as the initiatives of Soutien Group.
