The Saudi Arabian Social Development Bank is allocating $53.3 million in funding for technology SMEs | Techy Kings

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The Saudi Arabian Social Development Bank has signed an agreement with the National Technology Development Program (NTDP) to provide funding for government small businesses operating in the technology sector.

The Social Development Bank agreed with NTDP to handle a financing portfolio of 200 million Saudi riyals ($53.3 million) that will be allocated to emerging, micro and small technology enterprises to increase their competitiveness and contribution to the national, state-run Saudi economy. The Press Agency reported.

“The agreement aims to bridge the financing gap in the technology sector by providing easy financing solutions for Saudi entrepreneurs who want to invest in the information technology sector,” SPA said.

The move is part of the government’s broader strategy to unlock the potential of promising sectors in the country that can help diversify the economy away from oil and support the country’s economic transformation in line with the objectives of its Vision 2030 initiative.

Last month, Saudi Arabia unveiled a new National Industrial Strategy that aims to triple industrial output and increase the value of the kingdom’s industrial exports to about $149 billion by 2030.

The strategy, in partnership with the private sector, will help the government transform into an industrial powerhouse, contribute to securing global supply chains and export high-tech products globally, Saudi Crown Prince Mohammed bin Salman, who launched the strategy, said at the time.

The strategy aims to attract investment into the sector, increase economic diversification, increase non-oil exports and expand the government’s gross national product.

The new program identifies 800 investment opportunities worth $266.2bn to provide sustainable economic returns for Saudi Arabia by 2030.

The Saudi Arabian Social Development Bank and NTDP, a program under the Ministry of Communications and Information Technology, signed the agreement on the sidelines of Rise Up, a major entrepreneurship summit held in the King Abdullah Financial District.

The agreement is part of a series of agreements signed recently by the bank to strengthen and build strategic partnerships with key sectors in the government, with the aim of empowering young people to become self-employed and take advantage of opportunities in promising markets, SPA said.

The aim is to reach a wider user base, increase the project’s contribution to GDP and help young entrepreneurs achieve financial sustainability by accessing new markets, he said.

Updated: November 20, 2022, 6:57 AM

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