Musharaka Capital and Small and Medium Enterprises sign a cooperation agreement with the aim of launching an investment fund
11 June 2017
The General Authority for Small and Medium Enterprises (Monsha’at) recently signed a cooperation agreement with Musharaka Capital to establish a closed investment fund with a capital ranging between 100 to 500 million SAR, depending on available opportunities. The agreement was signed by His Excellency Dr. Ghassan bin Ahmed Al-Sulaiman, Governor of Monsha’at, and Ibrahim bin Fahd Al-Assaf, CEO of Musharaka Capital.
The fund aims to enter the SME market either by acquiring shares in the capital of small and medium enterprises or through direct financing that converts into equity in these enterprises. This initiative is expected to have economic and social benefits by increasing the contribution of SMEs to economic development.
This effort aligns with Monsha’at’s mission to develop the SME sector, increase its contribution to GDP, and boost the participation of the national workforce in line with the goals of the National Transformation Program and Saudi Vision 2030.
Dr. Ghassan Al-Sulaiman stated that this collaboration is part of the authority’s strategy to improve the business environment by facilitating business execution through regulatory reviews and policy recommendations, enhancing access to financing through diversified funding solutions, and driving growth by supporting high-potential SMEs. Additionally, the initiative focuses on capacity building to enhance workforce skills and promote entrepreneurship as an attractive career path.
Dr. Al-Sulaiman emphasized that Monsha’at aims to be a key pillar of Saudi Arabia’s economic development, supporting Vision 2030 and beyond. This is achieved through strategic partnerships that improve the business environment both locally and internationally.
Dr. Ayed bin Farhan Al-Qahtani, Chairman of Musharaka Capital, affirmed that the company’s involvement in SME sector development aligns with Saudi Vision 2030’s goal of supporting the national economy through SMEs, which play a crucial role in economic activities. He noted that in many globally competitive economies, SMEs have been instrumental in driving economic growth.
Al-Qahtani highlighted that the cooperation between Musharaka and Monsha’at strengthens the role of private sector institutions in national development. It also adds economic incentives by opening more opportunities for youth entrepreneurship across Saudi Arabia, particularly in the Eastern Province. He emphasized the significance of this agreement in establishing a strategic framework for the expansion of SMEs in the short and medium term.
For his part, Ibrahim bin Fahd Al-Assaf, CEO of Musharaka Capital, stated that this partnership underscores Musharaka Capital’s central role in developing economic sectors and enhancing the business environment in alignment with its core values. He emphasized that the company aspires to be the leading and preferred investment choice in this promising sector, offering investors high-value investment opportunities.
Al-Assaf added that Musharaka Capital is committed to supporting the SME market due to its crucial contribution to GDP growth and its role in advancing the national economy.
It is worth mentioning that Musharaka Capital is a licensed financial company by the Capital Market Authority, specializing in investment fund management, financial advisory, and securities custody. Meanwhile, Monsha’at is dedicated to developing and supporting SMEs by fostering strategic partnerships across the public, private, and nonprofit sectors, both locally and internationally. The authority aims to make the SME sector a primary driver of economic growth in Saudi Arabia and a key enabler of Vision 2030.