Facilities: Government coordination to expedite the disbursement of dues to Taif investors
The Governor of the General Authority for Small and Medium Enterprises (Monshaat), Sami Al-Husseini, pledged to work diligently and coordinate directly with relevant government agencies to expedite the disbursement of outstanding financial dues to private sector establishments. Al-Husseini clarified that while the Authority is not directly responsible for providing financial support to settle these obligations, it plays a pivotal role as an effective intermediary to overcome obstacles and monitor procedures to ensure business sustainability.
These statements were made during an open meeting organized by the Taif Chamber of Commerce yesterday (Monday), which saw a significant turnout of entrepreneurs and investors. This move comes at a time when Saudi Arabia is giving considerable attention to the small and medium-sized enterprises (SMEs) sector, considering it a key pillar of Vision 2030, which aims to increase the sector's contribution to the GDP to 35%. Addressing liquidity challenges is therefore a top priority to ensure the growth of this vital sector.
The meeting included direct engagement with investors' concerns, with one healthcare facility raising a complaint about delayed payments exceeding 30 million riyals for services rendered to the Ministry of Health approximately six months prior. This delay has resulted in the facility being unable to pay its employees' salaries. The governor pledged to follow up on this case and others to ensure the necessary liquidity for continued operation.
Regarding general challenges, attendees discussed the phenomenon of some businesses exiting the market, attributing this to financial difficulties and a lack of liquidity. Discussions emphasized the need for thorough field studies to identify the causes of these difficulties and develop proactive solutions to prevent the bankruptcy of startups, thereby strengthening the investment environment in the region.
In the context of solutions and initiatives, Al-Husseini reviewed a range of services offered by Monshaat to empower the sector, highlighting the “Refund” initiative, which aims to alleviate financial burdens by reimbursing government fees for new establishments for the years 2024–2028. He also discussed the “Jadeer” service, which qualifies establishments to compete for government procurement, in addition to the “Nawafith” application and intensive training programs designed to refine the managerial and financial skills of entrepreneurs, thus contributing to increased operational efficiency and reduced risk of business failure.
