Increased government focus on the small and medium enterprise (SME) sector in Saudi Arabia is likely to create significant opportunities for private capital, according to the organisers of the tenth Euromoney Saudi Arabia Conference.
The event, which is co-hosted with the Ministry of Finance, is being revamped this year to highlight opportunities across the business landscape of the Kingdom.
SMEs, which make up about 90% of all businesses in the Kingdom, have significant potential for growth, particularly as the government strives to lift the sector above 50% of total employment and GDP contribution. SMEs currently contribute less than 25% of both GDP and jobs.
One key area likely to stimulate change is the reform of the bankruptcy laws, which are under review by the Ministry of Commerce and Industry. The new draft bankruptcy law contains a number of provisions designed to stimulate the SME sector, including faster processes for companies who encounter financial difficulties and legislation to encourage private sector finance for new start-ups.
In addition, the Saudi Arabia Monetary Agency (SAMA) is striving to increase credit availability for SMEs, from banks as well as other agencies. The establishment of the Saudi Credit Bureau (Simah), under the supervision of SAMA, has played a role in facilitating access to financing for SMEs, as banks are better placed to manage credit risk.
This year’s Euromoney Saudi Arabia Conference will feature a special panel on SMEs and the role of private capital in financing innovation.
Euromoney Conferences’ Regional Director, Richard Banks, said: “What we’re seeing in Saudi Arabia at the moment is a coordinated approach to boosting the SME sector that involves major government ministries as well as an expanding role for banks and financiers. SMEs have the potential to generate employment opportunities, enhance productivity and increase economic diversification – all important goals for the Kingdom. This increased focus will generate significant opportunities in the near future.”
Among the speakers scheduled to appear on the panel are Hussam Al-Khayal, General Manager, Corporate Banking, Saudi Hollandi Bank; Abdulaziz Al-Omran, Co-Founder, Oqal; Walid Almurshed, Country Head, Saudi Arabia, International Finance Corporation; and Craig Moore, Chief Executive Officer, Beehive.
Attendees at this year’s conference will benefit from the insights of leading bankers on the ground in the Kingdom, as well as representatives of the government, including H.E. Dr. Ibrahim Al-Assaf, Minister of Finance, Kingdom of Saudi Arabia; H.E. Dr. Abdullatif Bin Rashid Al-Zayani, Secretary General, Gulf Cooperation Council; Jean Lemierre, Chairman, BNP Paribas, and Mohamed Al-Shaikh, Chairman of the Board, Saudi Capital Market Authority (CMA).
With institutional support from within the Kingdom and expertise from around the world, the tenth anniversary Euromoney Saudi Arabia Conference will provide vital insight into one of the world’s most exciting markets.