Saudi Arabia’s Small and Medium Enterprises General Authority (Monsha’at) has launched the second edition of its ‘Estrdad’ initiative, allocating USD 400 million (SAR 1.5 billion) to refund government fees for startups and SMEs.
The program, designed to ease financial burdens during the critical first three years of operations, reflects the Kingdom’s Vision 2030 goal of strengthening SME competitiveness and building a diversified, sustainable economy.
Under Estrdad, refunds will be issued periodically to qualified enterprises starting immediately, with disbursements continuing through 2028. Eligible SMEs must have begun operations after January 1, 2024, and meet specific ownership and localization requirements.
The initiative covers 10 types of fees and financial costs, including:
- 80% of expatriate fees
- Fees for publishing articles of association, commercial registration, and municipality licenses
- Saudi Post fees and chambers of commerce subscriptions
- Trademark registration and economic activity licenses
- Patent registration, in a new move aimed at fostering innovation among national enterprises
By targeting early-stage businesses, Monsha’at seeks to improve cash flow stability, stimulate innovation, and lower entry barriers for entrepreneurs across the Kingdom.
How Estrdad Aligns with Vision 2030
SMEs currently account for more than 40% of Saudi Arabia’s GDP contribution goal under Vision 2030, making them central to economic diversification efforts.
Estrdad builds on earlier support initiatives that successfully reduced default risks by leveraging partnerships with local financial institutions, including the Iraqi Company for Bank Guarantees.
Commenting on the launch, Monsha’at emphasized that SMEs and startups are not only drivers of job creation but also engines of innovation.
By refunding government fees, the program aims to create a more supportive business climate where founders can reinvest in growth rather than absorb high upfront costs.
Estrdad represents one of the largest targeted SME support packages in the region, and its emphasis on refunding patent registration and innovation-related costs underscores Saudi Arabia’s ambition to position SMEs at the heart of its knowledge economy.
For entrepreneurs, the initiative provides a safety net during early growth, while for the Kingdom, it marks another step in transforming its business ecosystem into a global hub for startups and innovation.
