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Saudi Arabia Allocates $8b to Support Entrepreneurs, Venture Capital

Business incubators and accelerators in Saudi Arabia (Asharq Al-Awsat)
Business incubators and accelerators in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Allocates $8b to Support Entrepreneurs, Venture Capital

Business incubators and accelerators in Saudi Arabia (Asharq Al-Awsat)
Business incubators and accelerators in Saudi Arabia (Asharq Al-Awsat)

Saudi authorities allocated $8 billion to support entrepreneurs and venture capital, and the Saudi Venture Investment Company intends to increase the investment allocation in the coming years by $1.6 billion.

The Ministry of Industry and Mineral Resources and the Small and Medium Enterprises General Authority (Monshaat) signed an agreement to establish incubators and business accelerators to develop the industrial and mining sectors and logistical services.

The agreement was signed on the last day of the Biban 23 Forum, organized by Monshaat.

The Ministry's official spokesman, Jarrah al-Jarrah, explained that the agreement aims to set a framework for joint action between the two parties and unify efforts with the relevant authorities.

Jarrah noted that this would help boost coordination and effective joint action and achieve the desired goals of small and medium enterprises' development initiatives.

He stated that the agreement would involve the authority in the projects undertaken by the Ministry to establish incubators and business accelerators related to small and medium enterprises in the targeted sectors.

It would also promote cooperation and joint coordination in a project to study and implement industrial and mining incubators and accelerators.

Based on the agreement, the two parties will exchange experiences, information, reports, and studies related to the entrepreneurship environment for the targeted sectors, according to the regulations and policies.

Furthermore, the Saudi Industrial Development Fund signed a cooperation agreement with Monshaat to provide advisory support to SME owners of small and medium enterprises on launching industrial programs.

The agreement aims to provide new entrepreneurial opportunities by transforming promising ideas and innovations into successful industrial projects and provide entrepreneurs with the basic skills to identify and develop investment ideas.

It also assists in preparing a feasibility study, enabling them to establish and launch their industrial projects.

The Fund aims to provide its support and expertise in qualifying SME owners to enter the industrial sector, ensuring the projects have added value and played an active role in developing the local economy.

Also, at Biban 23, the Saudi Social Development Bank asserted its commitment to enhance entrepreneurship and support small and medium-sized enterprises with $6.3 billion in financing over the next three years.

CEO Ibrahim al-Rashid said the bank's strategy is to boost economic productivity within programs and products to provide financing solutions for emerging enterprises, develop support services, offer financing alternatives, and encourage economic activity in less developed regions.

The E-Commerce Council launched several initiatives with international universities, training centers, and significant leading companies to provide training programs for those wishing to learn sector skills.

It also aims to provide job opportunities in related companies, empower entrepreneurs, and facilitate business start-ups.

Biban 23, under the theme "Fostering Tangible Opportunities," continued its fifth and final day with a series of workshops and sessions aimed at enhancing entrepreneurship and stimulating entrepreneurial skills through specialized programs in increasing administrative, financial, and technical efficiencies. The forum also aims to support individuals with ideas to launch their projects.

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COP29 President to Asharq Al-Awsat: We Aim for Fair Climate Ambitions, Value Saudi Efforts

Security personnel walk outside the venue of the COP29 conference. (AP)
Security personnel walk outside the venue of the COP29 conference. (AP)
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COP29 President to Asharq Al-Awsat: We Aim for Fair Climate Ambitions, Value Saudi Efforts

Security personnel walk outside the venue of the COP29 conference. (AP)
Security personnel walk outside the venue of the COP29 conference. (AP)

The appointed president of the UN Conference on Climate Change (COP29), Mukhtar Babayev, emphasized that the conference has a clear vision to advance ambition and empower action toward achieving the 1.5°C target.

“We aim for fair climate ambitions and sustainable financing,” he told Asharq Al-Awsat, pointing to Saudi Arabia’s efforts in addressing critical climate issues.

Azerbaijan will host COP29 starting Monday, with the conference running through November 22, to address the rising threats of climate change. The top priority will be reaching an agreement on a new climate finance target.

On the eve of the meeting, Babayev told Asharq Al-Awsat that the vision involves “enhancing ambition” by having parties submit Nationally Determined Contributions, National Adaptation Plans, and biennial transparency reports as signals of commitment and guidance on mutual support.

Babayev, who also serves as Azerbaijan’s Minister of Ecology and Natural Resources, added that empowering action requires increased climate financing from multiple sources to turn ambitions into concrete actions. Key goals include establishing a fair, ambitious climate finance target, finalizing Article 6 implementation, reforming multilateral development banks to address climate efforts more effectively, and mobilizing the private sector to play a key role, he underlined.

Article 6 is a core component of the Paris Agreement, focusing on the development of carbon markets, where countries, companies, and individuals can trade carbon credits.

Babayev also noted that COP29 has launched its action program, with initiatives to advance various issues beyond the formal negotiations.

“Much of our strategy builds on past progress and prior commitments, from the Paris Agreement to the global stocktake,” he said. “By working closely with parties, including Saudi Arabia, the Gulf Cooperation Council, and the Middle East and North Africa, we hope to make real strides this year.”

Geopolitical tensions

Babayev acknowledged that geopolitical tensions present ongoing challenges to global climate action.

However, he said COP29 provides an opportunity to unite countries around a shared goal: addressing climate change.

“As COP29 president, our strategy centers on diplomacy, inclusivity, and practical solutions to ensure that political issues do not hinder progress,” he explained. Climate change affects all countries, creating common ground for cooperation.

Vulnerable nations

Babayev highlighted the COP29 presidency’s commitment to prioritizing the needs of small island developing states and the least developed countries, as they are disproportionately affected by climate change despite contributing the least to global emissions.

“In COP29 presidency consultations, we presented a vision based on two parallel pillars: enhancing ambition and empowering action, with climate finance as a top priority. Reaching an agreement on a fair, ambitious new climate finance target, or the new collective quantified goal, is essential for addressing the severe climate impacts facing frontline communities, including small island developing states and the least developed countries,” he said.

Collective quantified goal

Babayev underscored the new collective quantified goal as a key priority at COP-29, saying: “The top negotiation priority for the COP29 presidency is reaching agreement on a fair and ambitious new climate finance target.”

He continued: “We know the needs are in the trillions, but perspectives differ on how to achieve this. Realistically, public sector contributions and mobilization appear to be in the hundreds of billions. The new target should also include detailed qualitative elements, and we’ve seen progress in terms of access, robust transparency arrangements, structure, and a ten-year framework.”

Upholding commitments

Ensuring that past commitments are honored is a top priority for the COP29 presidency, according to Babayev.

“Transparency is essential to mutual trust within the UNFCCC process, and the COP29 presidency has emphasized enhancing transparency, with biennial transparency reports crucial for tracking progress on commitments and assessing financial gaps and needs,” he explained.

Azerbaijan will lead by example by submitting its own biennial transparency reports ahead of COP29, and Babayev encouraged other parties to do the same. “We are creating a platform for parties to demonstrate their commitment to transparency and publish their biennial transparency reports on time,” he added.

Loss and damage fund and additional pledges

Recognizing COP29’s role in securing additional pledges and enhancing funds to better support vulnerable communities, Babayev stated: “The COP29 presidency is committed to addressing these concerns directly. We recently made substantial progress in Baku and are proud of the role we have played so far.”

He explained: “At the third meeting of the Loss and Damage Fund Board, held in Baku, we took significant steps to establish the financial groundwork for disbursements starting in 2025. Hundreds of millions already pledged will provide practical support to the most vulnerable communities, and we will use COP29 as a platform to call for additional contributions to further strengthen the fund.”

Babayev also acknowledged the contributions of Saudi Arabia and the Middle East and North Africa region, noting that Saudi Arabia has played a vital role through its leadership of the Arab negotiating group, representing the region’s views and priorities on the global stage.

“We appreciate the efforts of our partners in Saudi Arabia and the Middle East and North Africa in addressing the critical climate issues affecting us all,” he said.

Reflecting on his meeting with Saudi Energy Minister Prince Abdulaziz bin Salman in Jeddah earlier this year, Babayev noted: “We discussed opportunities for collaboration on climate action and how we can work together most effectively to achieve the goals and principles of the UNFCCC and the Paris Agreement.”

He welcomed Saudi Arabia’s initiatives to address climate change, including renewable energy use, emissions management, and carbon reduction and removal efforts such as the Saudi Green Initiative and the Middle East Green Initiative, along with circular carbon economy practices, technologies, and other national and regional programs.