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Saudi-Egyptian Committee Launches Website to Finance MSMEs

A general view of Cairo, Egypt. (AFP file photo)
A general view of Cairo, Egypt. (AFP file photo)
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Saudi-Egyptian Committee Launches Website to Finance MSMEs

A general view of Cairo, Egypt. (AFP file photo)
A general view of Cairo, Egypt. (AFP file photo)

The Egyptian-Saudi Joint Committee for the Development of Micro, Small, and Medium Enterprises (MSMEs) launched a website to showcase its efforts, as part of $200 million Saudi grant.

The grant is dedicated to supporting the state’s efforts to bridge the gap between financial institutions and MSMEs and enable their access to financing through intermediaries.

The launch coincided with the International Day of Micro, Small, and Medium-sized Enterprises that falls on June 27 and which was declared by the UN General Assembly to raise public awareness of their contribution to sustainable development and the global economy.

The website also provides a clear structure for intermediaries who require funding and would want to benefit from the grant through applying to the committee.

The launch was attended by the Egyptian Minister of International Cooperation Rania al-Mashat, and head of Saudi committee Hassan al-Attas, along with a number of officials from both countries.

Mashat praised the distinguished Egyptian-Saudi strategic relations, which are reflected in the development financing offered for several projects across various sectors.

The bilateral partnership includes the King Salman Program for the Development of the Sinai Peninsula, in addition to the grant offered for the development of MSMEs, which capitalize on the national and global sustainable development framework, said the minister.

She explained that the Saudi grant plays a vital role in bridging the financing gap between lenders and MSMEs in light of the paramount importance of these projects to the Egyptian economy, as it is a potential force that supports economic growth.

She noted that the grant has financed 2,180 micro, small, and medium projects so far through intermediary agencies in 27 governorates. The projects have contributed to creating more than 12,000 job opportunities.

The committee aims during the coming period to reach a larger number of beneficiaries.

For his part, Attas lauded the strategic relations between Egypt and Saudi Arabia. He explained that the launch of the website will facilitate access to the Saudi development financing directed to the support of the MSMEs in Egypt.

Attas noted that the website will create a communication platform through which the beneficiaries can showcase their success stories resulting from financial support.

He further added that the total cooperation portfolio between the two countries has reached $30 billion, with over 6,000 Saudi companies working in the Egyptian market.

The Saudi grant has helped finance several projects in various major sectors, in line with the Ministry of International Cooperation’s development strategy along with its economic diplomacy principles, he added.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.