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| Small and Medium Enterprises General Authority (Monsha'at) | |
|---|---|
| Name | Small and Medium Enterprises General Authority (Monsha'at) |
| Native name | الهيئة العامة للمنشآت الصغيرة والمتوسطة |
| Formation | 2016 |
| Headquarters | Riyadh, Saudi Arabia |
| Leader title | Governor |
| Leader name | Ahmed Al-Mubarak |
Small and Medium Enterprises General Authority (Monsha'at) is a Saudi Arabian autonomous authority established to support Small and medium-sized enterprises across Saudi Arabia through policy, financing, and capacity-building interventions. It operates within the context of Vision 2030 (Saudi Arabia), coordinating with ministries, development funds, and international partners to foster entrepreneurship, competitiveness, and private sector diversification.
Monsha'at was created in 2016 as part of reform efforts linked to Vision 2030 (Saudi Arabia), following initiatives by the Council of Ministers (Saudi Arabia), the Ministry of Commerce (Saudi Arabia), and the Ministry of Finance (Saudi Arabia). Its establishment echoed precedents such as the Small and Medium Enterprises Development Authority (Pakistan), the Small Business Administration (United States), and the European Investment Bank-backed SME programs in the European Union. Early partnerships included memoranda with the Saudi Industrial Development Fund, the Public Investment Fund (Saudi Arabia), and multilateral organizations like the World Bank and the Islamic Development Bank. Over time Monsha'at engaged with regional actors such as the Gulf Cooperation Council and international networks including the Organisation for Economic Co-operation and Development and the United Nations Industrial Development Organization.
Monsha'at's mandate encompasses regulation, development, and advocacy for SMEs, aligning with directives from the Council of Economic and Development Affairs (Saudi Arabia), the Ministry of Investment (Saudi Arabia), and the General Authority for Small and Medium Enterprises. Its functions mirror those of entities such as the UK Department for Business and Trade, the Korea SMEs and Startups Agency, and the Japan External Trade Organization. Core duties include designing SME classification standards, delivering training programs comparable to those by Microsoft for Startups and Google for Startups, and coordinating supply-chain inclusion initiatives akin to procurements promoted by the United Nations Development Programme and the World Trade Organization.
Monsha'at is headed by a Governor reporting to boards and councils like the Council of Ministers (Saudi Arabia) and engaging with agencies including the Ministry of Commerce (Saudi Arabia), the Ministry of Human Resources and Social Development (Saudi Arabia), and the Ministry of Municipal and Rural Affairs and Housing (Saudi Arabia). Its internal divisions reflect functions seen in the Small Business Administration (United States) and the European Commission directorates: policy and research units, finance and guarantees departments, training centers, and regional offices across provinces such as Riyadh Province, Makkah Province, and the Eastern Province (Saudi Arabia). Governance mechanisms involve advisory councils with representatives from the Public Investment Fund (Saudi Arabia), chambers like the Riyadh Chamber of Commerce and Industry, and private stakeholders including major corporations and incubators such as King Abdullah University of Science and Technology-linked programs.
Monsha'at has launched programs for incubation, acceleration, and market access resembling initiatives by Start-Up Nation Central, Techstars, Y Combinator, and public programs like Startup India. Notable initiatives include capacity-building academies modeled after Prince Mohammed bin Salman College of Business and Entrepreneurship, supply-chain integration projects with state-owned enterprises like Saudi Aramco and Saudi Basic Industries Corporation, and digital platforms comparable to Alibaba and Amazon marketplaces for SME visibility. It collaborates on events such as the Future Investment Initiative and the Gitex Africa-style exhibitions, and partners with universities like King Saud University and institutions like the Saudi Arabian General Investment Authority for entrepreneurship ecosystems.
Monsha'at facilitates financial instruments including loan guarantees, concessional financing, and equity co-investment, coordinating with the Saudi Industrial Development Fund, the Public Investment Fund (Saudi Arabia), and commercial banks such as the National Commercial Bank (Saudi Arabia). Its financing models draw on best practices from the European Investment Fund, the Asian Development Bank SME programs, and guarantee schemes like those of the KfW and Export–Import Bank of the United States. Support also includes grant-based programs in partnership with the Ministry of Finance (Saudi Arabia), venture capital partnerships influenced by Sequoia Capital and Accel (company), and invoice financing mechanisms similar to platforms such as InvoiceFair.
Monsha'at sets SME classification criteria and advises on regulatory reforms in coordination with the Ministry of Commerce (Saudi Arabia), the Saudi Standards, Metrology and Quality Organization, and the Zakat, Tax and Customs Authority. It contributes to labor and Saudization policies with input to the Ministry of Human Resources and Social Development (Saudi Arabia) and to procurement reforms with the Government Tenders and Procurement Law (Saudi Arabia) frameworks. Comparative policy dialogues involve entities like the Organisation for Economic Co-operation and Development, the World Bank Group, and national policy bodies such as the United Kingdom Department for Business and Trade and the Korea Institute for Industrial Economics & Trade.
Monsha'at reports growth in SME registration, access to finance, and participation in government procurement, with measurable outcomes cited alongside statistics from the General Authority for Statistics (Saudi Arabia) and evaluations by the World Bank. Positive impacts are compared with SME development successes in Turkey and Malaysia; however, criticisms echo debates seen in assessments of state-led industrial policy in contexts like Brazil and Russia: concerns about bureaucratic complexity, private sector crowding-out, and the efficacy of subsidy-driven models. Analysts from institutions such as the International Monetary Fund and regional think tanks note issues of transparency, regional disparities across provinces like Asir Province and Al Madinah Province, and the challenges of long-term competitiveness versus short-term support. Civil society commentators and business associations, including the Federation of Saudi Chambers, have called for greater coordination with venture capital ecosystems and for clearer metrics similar to evaluation frameworks used by the Global Entrepreneurship Monitor and the United Nations Conference on Trade and Development.
Category:Organizations based in Riyadh Category:Economy of Saudi Arabia