Saudi Arabia launches Estrdad second edition to back startups with SAR 1.5B

The General Authority for Small and Medium Enterprises (Monsha'at) has launched the second edition of the Government Fee Refund initiative (Estrdad), with a total value of SAR 1.5 billion.

The initiative seeks to assist startups over the first three years, in addition to stimulating their business environment and enhancing their sustainability and competitiveness, as reported by the Saudi Press Agency (SPA).

Small and medium-sized business (SME) registration will open on the day the initiative is launched and run through the end of 2026. Disbursements will be made to eligible SMEs on a rolling basis, starting from the date of their qualification and continuing until the end of 2028, with the aim of supporting their financial stability and fostering their growth.

The initiative includes the reimbursement of ten types of fees and costs, starting with 80% of the expatriate fee, as well as the publication of the articles of association, commercial register, municipal license, Saudi Post and Chamber of Commerce subscriptions, trademark registration, economic activity licenses, and patent registration, which was added in this edition, SPA added.

The initiative allows registration for any enterprise that meets the specific criteria, namely that the establishment is classified as a micro, small, or medium-sized enterprise. Besides, the enterprise must have been operating commercially for no more than three years, and its commencement date is no earlier than January 1, 2024.

The registration process for the first worker in the facility is a criterion for commencing business, provided that the facility achieves the localization rate approved by the Ministry of Human Resources and Social Development. Moreover, the shares or stocks owned by micro, small, or medium enterprises or individuals shall not be less than 60% of the company's total ownership.

The enterprise must be fully owned by Saudi individuals, with the exception of enterprises whose activities are classified according to the terms and conditions of the initiative. Meanwhile, establishments that do not carry out any economic activity that necessitates a license will not be allowed to submit registration or refund applications.

The initiative’s first edition benefited more than 27,000 establishments, contributing to the creation of more than 89,000 jobs. The continuity rate reached 75%, reflecting its direct impact on supporting economic growth and job creation.

The Minister of Commerce Majid Al-Qasabi said that the launch of the second edition of Estrdad empowers SMEs and alleviates their financial burdens.