New SAR 4 billion fund to support investments in small and medium-sized companies

The Council of Ministers on Monday approved the creation of a SR 4 billion ($1.1 billion) fund to develop Saudi Arabia’s venture capital industry and support investments in small and medium-sized companies (SMEs).

 

The decision was taken by the weekly session of the Cabinet on the basis of a recommendation from the Standing Committee of the Council of Economic and Development Affairs (CEDA).

 

Minister of Culture and Information Adel Al-Turaifi said the Cabinet had entrusted the Ministry of Commerce and Investment and the Public Investment Fund to work together to establish the fund, called the Al-Sanaeeq Fund.

 

With SR 4 billion at its disposal, the Fund will focus on investments in virtual capital and private ownership on a commercial basis to support and encourage investments in smaller firms.

 

Al-Turaifi said the Cabinet had reviewed a report presented by the Ministry of Commerce and Investment, which called for greater activity in the private sector to boost gross domestic product (GDP) through venture capital and private ownership investments.

 

The cabinet also instructed the Ministry of Commerce and Investments to remove obstacles to growth of the venture capital industry in Saudi Arabia, and to facilitate the entry of foreign venture capital firms into the country.