Kuala Lumpur, Riyadh to Finalize 9 Development MoUs

Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
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Kuala Lumpur, Riyadh to Finalize 9 Development MoUs

Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)
Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia to the Kingdom of Saudi Arabia (Photo: Yazeed al-Samrani)

A Malaysian diplomat revealed that discussions with Saudi Arabia were underway to finalize nine memoranda of understanding to enhance bilateral cooperation.

He noted that Kuala Lumpur and Riyadh have signed agreements on 18 industrial projects since December 2021, with total investments of $1.65 billion, which are expected to generate around 2,560 job opportunities.

In an interview with Asharq Al-Awsat, Datuk Wan Zaidi Wan Abdullah, Ambassador of Malaysia Riyadh, said: “Malaysia and the Kingdom have signed a total of 26 MoUs and agreements, and there are around 9 MoUs currently being discussed by the two sides based on the mutual visits that took place this year.”

“The two countries look forward to increasing their cooperation, including in the field of diplomatic training, health, housing development, and many other areas in the coming year.”

Datuk pointed that the two countries signed three new agreements in March 2021 during the official visit of then-Prime Minister Tan Sri Muhyiddin Yassin to the Kingdom. Those included the establishment of the Saudi-Malaysian Coordination Council, an MoU on the Umrah pilgrims, an another on Islamic affairs.

According to Datuk, the projects were mainly focused on chemical industries, food processing, electronics, electrical products, textile, and plastics.

He noted that the Kingdom’s main investments in Malaysia include Petronas, a joint venture with Saudi Aramco in the Pengerang Integrated Complex (BIC), as well as a partnership in Al-Rajhi Bank.

On the two countries’ cooperation in the fields of electronic industries, technology, mining, green economy, hydrogen and renewable energy, the ambassador explained that Riyadh and Kuala Lumpur signed the minutes of the establishment of the Saudi-Malaysian Coordination Council in March 2021, during the official visit of the former Prime Minister to Saudi Arabia, hoping that the council would serve as a comprehensive bilateral forum for consultations, chaired by the foreign ministers of the two countries.

“Malaysia enjoys close relations with the Kingdom, based on common values and aspirations to strengthen the unity of the Islamic nation. The deep-rooted ties are built on extensive contacts between the peoples of the two countries,” Datuk told Asharq Al-Awsat.

“The massive economic transformation in the Kingdom over the past decades, which coincided with the economic development of Malaysia, has greatly contributed to this multifaceted bilateral cooperation.”

He added that in 2021, Saudi Arabia was Malaysia’s 17th trading partner, the 25th largest export destination, and the 15th largest source of imports, while Malaysia was Saudi Arabia’s 12th trading partner and the 21st export destination in 2020.

Datuk continued: “From January to September 2022, the total trade between the two countries increased by 135.1 percent, to $7.32 billion, compared to $3.11 billion in the same period in 2021… Exports increased by 51 percent to $1.3 billion, compared to $860 million for the same period last year.”

He explained that the main Malaysian exports to the Kingdom included palm oil agricultural products, petroleum products, processed foods, electronics, and palm oil-based products.

Imports from Saudi Arabia include, according to Datuk, chemical and petroleum products, metal industries, and rubber merchandises.



Saudi Arabia Strengthens Role of SMEs as Key Driver of Economic Growth

A building affiliated with the General Authority for Small and Medium Enterprises (Monsha’at website)
A building affiliated with the General Authority for Small and Medium Enterprises (Monsha’at website)
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Saudi Arabia Strengthens Role of SMEs as Key Driver of Economic Growth

A building affiliated with the General Authority for Small and Medium Enterprises (Monsha’at website)
A building affiliated with the General Authority for Small and Medium Enterprises (Monsha’at website)

Saudi Arabia’s small and medium enterprises (SMEs) are experiencing unprecedented growth, positioning themselves as a vital pillar in the Kingdom’s efforts to diversify its economy and increase private sector participation, which are core goals of Vision 2030.

According to the Q1 2025 report by the General Authority for Small and Medium Enterprises (Monsha’at), commercial registrations surged 48% year-on-year, reaching 154,640 new registrations in the first quarter alone. Active registrations climbed to 1.68 million, reflecting a 6% annual increase.

As part of the Kingdom’s accelerating digital transformation, over 41,000 active businesses now operate in e-commerce. Notably, 45% of active commercial registrations are women-owned, highlighting growing female participation in the national economy.

Support from Monsha’at has been crucial to this expansion. Nearly 9,850 companies benefited from SME support centers, and over 1,400 received assistance from innovation hubs. The flagship Tomouh (Ambition) program, launched in 2017, has played a central role in financing high-growth companies, facilitating 34 listings on the parallel equity market (Nomu) with a combined market value of $450 million in 2025 alone, from a total supported portfolio of $6.6 billion.

To date, Tomouh has funneled more than $15.7 billion into startups and SMEs, cementing Saudi Arabia’s status as an entrepreneurial hub.

Flexible Financing and Government Support

In Q1 2025, the SME Bank expanded debt-based crowdfunding and launched a new “agency model” in partnership with fintech platforms. This initiative provided flexible financing between $13,300 and $266,000, disbursing $23.4 million in its initial phase, with a target of $64 million.

The Kafalah loan guarantee program also saw major expansion, issuing $3.7 billion in guarantees to 5,346 SMEs, facilitating total funding of $4.8 billion, a 17% rise from 2023.

Craft industries also surged in 2025, driven by global demand for cultural goods, e-commerce growth, and initiatives like “Made in Saudi” and “Year of Handicrafts,” which improved artisans’ access to finance, training, and global markets. The global handicraft market reached $1.22 trillion in 2025.

Sector Breakdown and Impact

Spokesperson Badr Al-Qadi told Asharq Al-Awsat that Riyadh accounted for 39% of commercial registrations, followed by Makkah (17%) and the Eastern Province (16%). Key growth sectors include manufacturing, fintech, tourism, entertainment, health, and e-commerce.

Initiatives like Tomouh, the Nawafeth app for easy access to support services, the Jadeer procurement tool, and Monsha’at Academy for skills development have further empowered entrepreneurs.

By end-2024, SMEs employed 7.86 million people, surpassing employment targets. Their contribution to GDP hit 21.9% in 2023, exceeding the 20.2% target - even amid oil production cuts - and attracting 30% of regional venture capital investment.

With robust funding channels, digital integration, and inclusive policies, Saudi Arabia is advancing steadily toward making SMEs a cornerstone of its national economy and Vision 2030 strategy.