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| Monsha’at | |
|---|---|
| Name | Monsha’at |
| Native name | الهيئة العامة للمنشآت الصغيرة والمتوسطة |
| Formation | 2016 |
| Headquarters | Riyadh |
| Jurisdiction | Kingdom of Saudi Arabia |
| Chief1 name | Khalid Al-Falih |
| Chief1 position | Chairman |
Monsha’at is the Saudi Arabian authority responsible for developing and supporting small and medium enterprises and microenterprises within the Kingdom of Saudi Arabia. Established to drive entrepreneurship, diversification, and private-sector growth, the authority coordinates with national bodies, investment funds, and international organizations to implement policy, regulation, and support programs. Its remit intersects with economic transformation initiatives, workforce development, and sectoral competitiveness across Saudi regions.
Monsha’at was launched in 2016 as part of a suite of reforms linked to Vision 2030 and the Council of Ministers (Saudi Arabia). Initial formation drew on precedents from agencies such as Small Business Administration (United States), British Business Bank, KfW Bank Group and consultancies including McKinsey & Company and Boston Consulting Group. Early partnerships involved Ministry of Commerce (Saudi Arabia), Ministry of Labor and Social Development (Saudi Arabia), Public Investment Fund (Saudi Arabia), and city authorities like Riyadh Municipality and Jeddah Municipality. Subsequent milestones referenced include agreements with World Bank, International Monetary Fund, Islamic Development Bank, and private investors such as BlackRock, SoftBank Group, and Brookfield Asset Management.
Mandate objectives align with Vision 2030 targets for private-sector employment, SME contribution to Gross Domestic Product and diversification away from petroleum reliance. Core goals include increasing SME access to finance through mechanisms akin to venture capital and angel investment networks, enhancing regulatory frameworks comparable to reforms promoted by Organisation for Economic Co-operation and Development and World Economic Forum, and promoting entrepreneurship ecosystems modeled on Silicon Valley, Shenzhen, and Tel Aviv. Strategic aims involve collaboration with investment vehicles such as Riyadh Chamber of Commerce, Makkah Chamber of Commerce, Saudi Arabian General Investment Authority, and development banks like European Investment Bank and Asian Development Bank for market access and export promotion.
The authority’s governance includes a board drawing members from entities like Public Investment Fund (Saudi Arabia), Ministry of Finance (Saudi Arabia), Ministry of Commerce (Saudi Arabia), and representatives from regional bodies such as Eastern Province Municipality and Asir Province. Operational units mirror international counterparts, with divisions for finance and guarantees, policy and regulation, training and capacity-building, and digital services akin to Saudi Data and AI Authority. Senior management liaises with bodies including Saudi Arabian Monetary Authority, Capital Market Authority (Saudi Arabia), Human Resources Development Fund, and university incubators like King Abdullah University of Science and Technology, King Saud University, and Princess Nourah bint Abdulrahman University.
Programs include financing and guarantee schemes similar to programs run by European Investment Fund and Small Industries Development Bank of India, accelerator and incubation networks inspired by Y Combinator, 500 Startups, MassChallenge, and sectoral initiatives targeting manufacturing, retail, healthcare, tourism, and entertainment. Capacity programs coordinate with training providers such as Coursera, Udacity, LinkedIn Learning, and local institutions like Technical and Vocational Training Corporation. Market-enablement initiatives partner with platforms like Amazon (company), Noon (e-commerce), Careem, and Uber Technologies for digital sales channels. Export and trade facilitation draws on models from Export-Import Bank of the United States, Trade Promotion Organization of Pakistan, and Japan External Trade Organization.
Stakeholder engagement spans multilateral actors including United Nations Development Programme, United Nations Industrial Development Organization, International Labour Organization, and bilateral partners like United Kingdom Foreign, Commonwealth and Development Office, United States Agency for International Development, and Japan International Cooperation Agency. Private-sector partners include Saudi Aramco, SABIC, Saudi Telecom Company, Al Rajhi Bank, National Commercial Bank (Saudi Arabia), Mobily, and STC Pay. Collaboration with startup ecosystems involves accelerators and investors such as Raed Ventures, STV (Saudi), Riyadh Valley Company, and international incubators like Plug and Play Tech Center and Start-Up Chile.
Reported outcomes reference increased SME registrations, employment figures, and contribution to non-oil Gross Domestic Product as targeted by National Transformation Program (Saudi Arabia). Impact assessments draw on methodologies used by OECD, World Bank Group, and International Finance Corporation. Economic outcomes include higher access to finance through initiatives resembling credit guarantee schemes and venture instruments linked to Public Investment Fund (Saudi Arabia), increased entrepreneurship participation among women aligning with initiatives by Saudi Vision 2030 Women’s Empowerment Program, and regional development comparable to growth corridors like NEOM, King Salman Energy Park, and Riyadh Metro connectivity effects on local commerce.
Critiques mirror those of SME authorities globally: dependence on state-linked funding comparable to debates around Sovereign Wealth Fund dynamics, regulatory complexity involving Ministry of Commerce (Saudi Arabia) and Zakat, Tax and Customs Authority, market concentration with dominant incumbents such as Saudi Aramco and SABIC, and challenges in developing venture ecosystems like those in Silicon Valley and Shenzhen. Other concerns involve measurement and transparency norms advocated by Transparency International, capacity constraints similar to those faced by Small Business Administration (United States), and regional disparities between Riyadh, Jeddah, Dammam, and peripheral provinces. Academic critiques reference research outlets including Harvard Business School, London School of Economics, and King Faisal Center for Research and Islamic Studies.