Saudi Arabia Backs Small Business with a National SME Strategy and New Financing

By Denys Chernenko · 29 September 2026

Saudi Arabia has put small and medium-sized businesses at the centre of its next growth phase. In September 2026 the government approved a national SME strategy, and its SME authority signed a new financing agreement worth up to SAR 5 billion. For anyone opening or running a restaurant or café in the Kingdom, the support is real, and so are the conditions that come with it.

What was approved

On 15 September 2026 the Saudi Cabinet, chaired by Crown Prince and Prime Minister Mohammed bin Salman, approved the National Strategy for Entrepreneurship and Small and Medium Enterprises. It comprises 13 initiatives and sets three targets:

• Raise the SME share of GDP to 35 percent, in line with Vision 2030. It was 22.9 percent in 2025.
• Create more than 500,000 direct and indirect jobs.
• Place Saudi Arabia first in the Entrepreneurial Skills and Knowledge Index by 2030.

The initiatives include open commercial innovation, more participation in government procurement, support for exports and international expansion, better access to financing and lower business costs.

The money behind it

Two days later, Arab News reported that Monsha'at, the Small and Medium Enterprises General Authority, had signed an agreement with STC Bank at the Money20/20 conference in Riyadh for up to SAR 5 billion (about US$1.33 billion) in Shariah-compliant financing for micro, small and medium businesses. It offers short-, medium- and long-term facilities, cash and non-cash, with terms of up to 10 years.

This comes on top of programmes already running. The Kafalah loan-guarantee programme has supported more than 27,000 businesses through over 73,000 guarantees, backing close to SAR 135 billion of financing. Monsha'at's Estrdad initiative, worth SAR 1.5 billion, refunds 10 types of government fees and financial costs to young businesses, starting with 80 percent of expatriate fees. It is open to businesses that started on or after 1 January 2024 and meet its ownership rules and the Saudization percentage set by the Ministry of Human Resources and Social Development. Registration runs until the end of 2026.

The base is already large. Saudi Arabia had more than 1.83 million SMEs by the end of the second quarter of 2026, and in 2025 the sector employed around 8.8 million people.

What it means for restaurant and café operators

Our view, as operators, not as lenders or lawyers.

Money is easier to find than margin

Banks and guarantee programmes will ask for a business plan and a cash-flow forecast. For a restaurant, that plan is only as good as its food cost, labour cost and rent assumptions. A plan that assumes a 28 percent food cost and runs at 35 percent in practice is short seven points of sales from day one, however good the financing terms.

Check Estrdad before the end of 2026

If you started trading on or after 1 January 2024 and meet the ownership and Saudization rules, the fee refund is money you have already spent coming back. Monsha'at sets the eligibility rules, so confirm yours with them directly.

Borrow for things that pay back

Financing kitchen equipment or a fit-out over several years can make sense. Borrowing to cover a monthly loss usually delays the decision instead of fixing it. Get prime cost under control first, then decide how much debt the business can carry. See how to calculate prime cost.

Expect more competition

Cheaper money and lower fees mean more new cafés and restaurants competing for the same guests and the same staff. Concept, pricing and labour planning matter more, not less.

Where The DC Group fits

We work remotely with restaurant and hotel operators in the Gulf on the operating side: menu costing, prime cost, labour planning and the opening cost model a lender will want to see. We are not a lender, and we do not handle licensing, company setup or funding applications.

This article is general information, not financial or legal advice. Sources: Arab News, 15 September 2026 · Asharq Al-Awsat, 15 September 2026 · Arab News, 17 September 2026 · Saudi Press Agency, 1 September 2025. Accessed 29 September 2026.