JEDDAH, 27 November 2005 — Eastern Province Governor Prince Muhammad ibn Fahd has emphasized the role of small and medium enterprises (SMEs) in boosting economic development and cutting down unemployment rate.
“The Saudi government has realized the importance of SMEs in boosting development and achieving our strategic goals, most importantly the creation of jobs for our young graduates,” the Saudi Press Agency quoted him saying.
Prince Muhammad made this comment while opening the third conference on small- and medium-scale enterprises in Dammam organized by the Eastern Province Chamber of Commerce and Industry.
He said the government had established a number of institutions such as the Industrial Development Fund and Manpower Development Fund to promote SMEs.
The Centennial Fund, which was launched recently, offers financial aid worth SR150 million to young Saudi men and women who intend to open own businesses. The new fund will support establishment of 280 projects and create more than 4,000 jobs during the next five years.
Abdul Rahman Al-Rashed, chairman of the chamber, said the conference titled “Small- and Medium-scale Enterprises: Actual Motivator of the National Economy” was one of a series of seminars and conferences planned by the chamber to discuss major issues facing the economy.
“The conference is significant as it comes at a time when Saudi Arabia has won accession to the World Trade Organization,” Rashed said and emphasized the need for strengthening the Kingdom’s SMEs to face competition from foreign companies.
Rashed referred to the chamber’s efforts to promote small and medium enterprises in the region. “We have introduced for the first time special prizes for the best small and medium enterprises,” he told the conference, adding that it was the first such initiative in the Kingdom.
He also spoke about another program to boost small-scale investors with the support and participation of the National Commercial Bank (NCB), which initiated the venture as part of its social service program. “This is one of our dreams and ambitions to realize,” he added.
Prince Muhammad distributed prizes instituted by the chamber to the best small-scale enterprise, SPA said. He also honored members of the prize committee as well as the main sponsors of the conference.
Later speaking to reporters, the governor called for cooperation between the private and public sectors to strengthen SMEs. The three-day conference will discuss a number of research papers focusing on strategies and policies to boost SMEs. An exhibition of SMEs is held on the sidelines of the conference.