Riyadh – In a step to activate the role of the General Authority for Small and Medium Enterprises, Saudi Cabinet agreed to deduct 25% of the Commission for Job Generation and Anti-Unemployment and grant it to the SMEs.
The cabinet’s decision comes in accordance with Vision 2030 to increase its domestic product.
SMEs are very important for the economic growth in the world, as they create job opportunities and boost imports.
Vision 2030 aims to create job opportunities that are suitable for citizens around the country; hence the general authority was established. SMEs contribute to 20% of the gross domestic product.
Despite all efforts, small enterprises are still suffering from administrational and regulatory procedures which make it harder for the enterprises to grow and gain funding.
In the light of that, Vision 2030 aims to help SMEs and create business incubators to support entrepreneurs develop and enhance their skills.
Minister of Labor and Social Development Mufrej al-Haqbani expressed his gratitude for the Custodian of the Two Holy Mosques King Salman bin Abdul Aziz, the Crown Prince and the Deputy Crown Prince for the decision to change the name of Saudi Credit and Savings Bank to Social Development Bank.
The minister confirmed that the cabinet’s decision is important for changing the businesses of the Saudi Credit and Savings Bank to social development and expand the loans and savings programs.
Haqbani pointed out that the bank’s strategy aims to encourage savings and enable them to reach production rather than needs, and safety instead of security.