Developing incentive based ecosystem to empower Saudi Arabia Industrial SMEs in Machinery, and equipment components

Abstract

SMEs' importance comes as they contribute toward economies' GDP. In some countries, manufacturing SMEs have also been a major contributor to GDP contribution. In Saudi Arabia, the transformational vision for the oil-based economy is diversification. The industrial sector is one of the transformation programs, with a strategy to reach 36,000 in 2030, up from a base of 10,000. The mining sector, as part of the Ministry of Industry and Mineral Resources, has also created investment opportunity for various sectors. This report investigates how SMEs in Saudi Arabia can be part of the machinery manufacturing within the mining sector value chain. Findings reveals that there are multiple supportive entities that enable small businesses with industrial sector. The dimensions of the enablement are across policy, financial, and development. The gap is integrating the current dimensions into a complex machinery manufacturing. The report proposes establishing an ecosystem for the SMEs led by a synergy of collaboration between entities.