Saudi Arabia announced on Monday the creation of an investment fund, with a capital of SR4 billion ($1 billion), to support small and medium enterprises (SMEs) with the participation of the private sector.
The contribution of the new fund, called "Fund of Funds," to the gross domestic product (GDP) is expected to be around SR400 million plus the creation of 2,600 jobs by the end of the year 2020, the Saudi Press Agency reported.
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It is also projected that the fund’s contribution to the GDP would reach around SR 8.6 billion with creation of around 58,000 jobs by the end of 2027.
The fund will play an active role in achieving the objectives of the Kingdom’s Vision 2030 to boost private sector growth and support SMEs as a key driver of economic growth and job creation as well as support for innovation and export promotion.
The fund will attract private sector participation through investments in venture capital funds and private equity funds.
The establishment of the Fund is one of the initiatives aimed at activating the role of the private sector and increasing its contribution to the GDP by stimulating investments related to venture capital and private ownership.
The fund also aims to support and develop the venture capital sector through the application of best practices and building an integrated business system to increase opportunities for the emerging and small and medium enterprises to have access to capital.
