Saudi Arabia Aims to 'Reboot, Rethink, and Regenerate' Entrepreneurship

The Global Entrepreneurship Congress (GEC) seeks to benefit from Saudi Arabia as a platform to reboot, rethink, and regenerate the entrepreneurship system at the international level.

Speakers at the conference reiterated that economic strength depends on the sector's development to return to the economies of countries positively.

The conference witnessed the signing of 33 agreements and the launch of several investment initiatives worth over $4.2 billion, supporting entrepreneurship in various fields and boosting the Kingdom’s status as an attractive environment for pioneers, innovators and creators in the Middle East and North Africa.

Saudi Aramco signed ten memoranda of cooperation and two agreements with local and international companies in digital transformation, information technology, and national development.

The Social Development Bank signed agreements with several entities, including the Royal Commission in Yanbu and the National Entrepreneurship Institute (Riyadah), and announced the launch of several initiatives to support Empowering entrepreneurs valued at around $3 billion.

The Saudi Venture Investment Company (SVC) signed agreements with several investment funds of more than $656 million.

SABIC launched the “Nusaned Fund 2" with al-Ahly Capital Holding worth $200 million to support startup companies and develop the industrial sector.

Minister of Communications and Information Technology Abdullah al-Swaha stressed that Saudi Arabia boasts several innovative companies and institutions led by the ministry that contribute in the growth of the entrepreneur sector.

Speaking at a panel discussion at GEC, Swaha noted that the Riyadh Green Initiative realizes its work and set goals, indicating that Crown Prince Mohammad bin Salman is one of the leading entrepreneurs, with his many projects in Saudi Arabia.

He added that the ministry supports and provides advice to entrepreneurs, all of whom “work for meaning and purpose, rather than money.”

Swaha continued that entrepreneurship is an essential part of the skills for success and is needed to reap the benefits of the 21st Century.

The minister said the Saudi government supports all procedures that help develop technology and benefit significantly from it, searching for innovation and creating different and advanced technologies that benefit all technological and economic aspects.

Egyptian businessman Samih Sawiris announced he intends to invest in the Saudi market during the coming period, stressing that work will be done to translate the project on the ground whenever appropriate opportunities are found.

During one of the dialogue sessions, Sawiris stated that the very encouraging thing in the business world is the low cost of becoming an entrepreneur.

“The world of business has now shaped in such a way that it is very easy and cheap to become an entrepreneur.”

Meanwhile, the speakers discussed topics aimed at helping entrepreneurs expand their businesses worldwide, providing them with the necessary skills to face crises, enhance flexibility, and reach the desired goals to support countries' economies.

The participants stressed the importance of establishing a unified global entrepreneurship system, helping sustain and expand the business, and acquiring the new global trends for pioneering work after the pandemic.

They also noted the need to reboot, rethink, and regenerate the entire system to achieve the goals set for the sector in the future.

The Social Development Bank (SDB) announced the allocation of $2.9 billion to finance entrepreneurs in the Kingdom in the next three years, as part of the Bank’s efforts in empowering Saudi youth and promoting comprehensive national development.

SDB CEO Ibrahim al-Rashid stated at the event that business financing programs in the past period exceeded $2.6 billion, noting that this support contributed to creating more than 100,000 jobs so far.

Rashid indicated that the Bank would allocate, during the coming period, several financing, training, and sponsorship programs to support entrepreneurs in establishing and developing their projects. The aim is to finance more than 68,000 startups and small businesses in the next three years.

On the sidelines of the conference, the SDB signed several agreements with various strategic bodies aiming to provide training, rehabilitation, and sponsorship services to male and female entrepreneurs.

It was also keen to initiate effective communication with the guests and visitors of the conference and introduce its services and financial and non-financial programs to them through the Bank’s pavilion in the exhibition accompanying the conference.

Furthermore, the Saudi Industrial Development Fund (SIDF) and the General Authority for Small and Medium Enterprises (Monsha'at) signed a cooperation agreement to support small and medium industrial enterprises in the Kingdom through their programs (Afaq and Tomooh).

The agreement seeks to enable SIDF's current and new small and medium enterprises to benefit from the services and programs provided by Monsha'at.

Cars24, an automotive e-commerce platform, Lenskart, the largest Asian optical eyewear retail chain, and Kitopi, a cloud-kitchen platform, signed memorandums of understanding (MoU) with Monsha’at to support entrepreneurs in specialized fields.

Monsha'at also signed an MoU with the Saudi Authority for Data and Artificial Intelligence to launch the "Ruwad" initiative.

The Royal Commission for Jubail and Yanbu, the Saudi Industrial Development Fund, and King Abdullah University of Science and Technology signed another MoU with Monasha'at to cooperate in the fields of data, artificial intelligence, and boost cooperation in various initiatives for entrepreneurs and small and medium enterprises.

Moreover, an agreement was signed with Aljabr Finance Company to finance products for entrepreneurs and small and medium enterprises, valued at $5.33 million.

The conference witnessed broad international participation through the launch of several investments.

Watheeq Financial Services closed an investment in Spiders Mobility for the pre-launch stage, at a value of $1.4 million, Courier Solutions for Logistics Services closed an investment round of $4.5 million, and PayPal received an investment of $1.6 million.

Merak Capital, an investment firm focused on technology, closed the seed round, led by Merak Capital, with the participation of MERCED, and an investor with a value of $1.3 million.

Antella closed an investment led by HALA Ventures in Egypt with $1 million. HALA Ventures also achieved an investment in Daily Mills, with the participation of Sidra Venture and Vida Holding, with a value of $5.3 million.

Vision Fund closed an investment in Krusty Company with a value of $2 million, at a pre-seed stage, with the participation of Access bridge Ventures and 500 Startups, with a value of $400,000.

The agreement stipulates for Monsha’at to add programs for the Industrial Fund within Tomooh, in line with the program's terms that target rapidly growing small and medium enterprises with added value to the national economy.

It aims to enhance growth and development by linking service providers and support agencies from the public and private sectors.

The dollar hit three-month lows on Wednesday as the US' trade war with its partners escalated, while a major overhaul to German government borrowing triggered the biggest sell-off in the country's debt since the late 1990s.

In addition to the cocktail of tariffs and a seismic shift in German fiscal policy, investors also scrutinized the start of China's annual sessions of its parliament, the National People's Congress, at which Beijing retained a goal of roughly 5% economic growth for 2025.

The euro hit its highest in four months, while European stocks surged. The biggest casualties were longer-dated German government bonds, caught up in their worst one-day selloff in more than 25 years as yields ripped higher, Reuters reported.

Overnight, German political parties agreed to a 500 billion-euro ($534.75 billion) infrastructure fund and, crucially, an overhaul in borrowing limits that economists billed as "a really big bazooka".

"Last night Germany announced plans for one of the largest fiscal regime shifts in post-war history, perhaps with reunification 35 years ago being the only rival," Deutsche Bank strategist Jim Reid said.

"Everything you thought you knew about Germany's economic prospects three months ago, or even three weeks ago, should be ripped up and you should start your analysis from fresh," he said.

German 30-year yields - the rate the government pays to borrow over the very long term - rose by almost a quarter of a percentage point in early trading, on track for their largest rise since October 1998.

The 30-year bond yield was last up 20 basis points at 3.03%.

"It’s a recognition that something has changed. Germany is the benchmark against which all these other markets are measured. And so this big transition in German fiscal policy is significant," Dario Perkins, managing director, global macro at TS Lombard, said.

"We’re a long way away from worrying about German fiscal problems. People have been pleading that Germany spends for the last 20 years."

Longer-dated yields elsewhere rose too, with French 30-year rates up 15 basis points at 4.0% and Italian 30-year bonds yielding 4.517%, up 17 bps.

Europe's STOXX 600 jumped by more than 1.2% to record highs. The prospect of a meaningful increase in European spending on security has sent the region's defence stocks soaring this month.

TRADE WAR INCOMING

US tariffs on imports from Canada, Mexico and China went into effect on Tuesday, when President Donald Trump also delivered his State of the Union address, in which he touted his successes since taking office six weeks ago.

Canada and China retaliated immediately, while Mexican President Claudia Sheinbaum vowed to respond likewise, without giving details.

With a full-on trade war underway, crude oil hit six-month lows, while bitcoin found its feet around $87,800 following a volatile week.

"Fears about weaker US and global economic activity are manifesting in the markets, with cyclicals driving the sell-off," said Kyle Rodda, senior financial markets analyst at Capital.com.

In China, the offshore yuan was a touch weaker at 7.2629, having staged its biggest one-day rally the previous session since Trump's inauguration as investors ditched the dollar.

Along with its unchanged economic growth target, Beijing committed more fiscal resources than last year to mitigate the impact of rising US tariffs.

China aims for a budget deficit of about 4% of gross domestic product in 2025, up from 3% in 2024.

Overnight, the US S&P 500 slid 1.2%, but futures rose 0.7% on Wednesday.

The US dollar index tumbled 0.5% to 105.03, bringing its losses over the last three days to 2.3%, the most in this timeframe since late 2022.

In the ascendant was the euro, which rose 0.6% to $1.0693, the most since mid-November, prompting a flurry of bullish forecasts from major investment banks.

Oil fell for a third day on Wednesday, under pressure from concern over energy demand as tit-for-tat tariffs ramp up and from OPEC+ plans to raise output in April.

Brent futures fell 1.3% to $70.09 a barrel, having hit $69.75 the previous day, the lowest since September.

Saudi Arabia Aims to 'Reboot, Rethink, and Regenerate' Entrepreneurship