Saudi Arabia launches $400m fund to boost startups and SMEs

Saudi Arabia’s Small and Medium Enterprises General Authority (Monsha’at) has launched the second edition of the Estrdad initiative, worth SR1.5bn ($400m), to refund government fees and support startups during their first three years of operation.

The programme aims to stimulate the business environment, enhance financial stability, and strengthen the sustainability and competitiveness of small and medium enterprises (SMEs).

It is part of Saudi Arabia’s ongoing drive to empower entrepreneurship and diversify the economy under Vision 2030.

Saudi startup support

According to Monsha’at, registration for SMEs begins immediately and will remain open until the end of 2026. Disbursements will be made periodically to eligible SMEs from the date of qualification, continuing until the end of 2028.

The initiative covers refunds on 10 types of fees and financial costs, including:

• 80 percent of expatriate fees
• Publishing the articles of association
• Commercial registration
• Municipality licenses
• Saudi Post fees
• Chambers of commerce subscriptions
• Trademark registration
• Economic activity licenses

In this new edition, patent registration has been added to encourage innovation and invention among Saudi enterprises.

Eligibility criteria require applicants to be classified as micro, small, or medium enterprises; to have been operating no more than three years; and to have started activity no earlier than January 1, 2024.

The start date is considered the day of the first employee’s registration.

Additional conditions include meeting the localization percentage set by the Ministry of Human Resources and Social Development. SMEs or individual owners must hold at least 60 percent of company ownership, and enterprises must be fully Saudi-owned, with limited exceptions for activities specified under the initiative’s terms.

Entities not engaged in licensed economic activities will not be eligible.

The initiative also provides a unified digital platform to verify eligibility and process refunds efficiently, reflecting Saudi Arabia’s digital transformation and commitment to advancing government services.

By reducing financial burdens on entrepreneurs, the Estrdad initiative underscores the Kingdom’s commitment to supporting SMEs as a key driver of innovation, job creation, and long-term economic growth.