Saudi Arabia’s Small and Medium Enterprises General Authority (Monsha’at) has launched the second edition of its ‘Estrdad’ initiative, allocating $400 million (SAR 1.5 billion) to refund government fees for startups and SMEs. The program looks to ease early financial burdens, foster innovation, and strengthen the role of small businesses in the Kingdom’s economy.
Boosting Early-Stage Growth
The Estrdad initiative specifically targets companies in their first three years of operation, helping them navigate the most challenging stage of their growth journey. By refunding critical fees, the program enhances financial stability and competitiveness while aligning with Vision 2030 goals to diversify and modernize Saudi Arabia’s economy.
- Registration opens immediately and runs until end of 2026.
- Approved refunds will be disbursed periodically until 2028.
- The program aims to strengthen sustainability and long-term growth of startups and SMEs.
What the Refund Covers
Estrdad refunds 10 categories of fees, reducing costs for entrepreneurs and encouraging formal business activity. These include:
- ✔️ Expatriate fees (80% refunded).
- ✔️ Publishing articles of association.
- ✔️ Commercial registration fees.
- ✔️ Municipality licenses.
- ✔️ Saudi Post services.
- ✔️ Chamber of Commerce subscriptions.
- ✔️ Trademark registration.
- ✔️ Economic activity licenses.
- ✔️ Patent registration (newly added in this round to support innovation).
By including patent registration, Monsha’at highlights its intent to not only support operations but also encourage startups to innovate and protect intellectual property.
Eligibility Requirements
The program sets clear criteria to ensure it supports genuine early-stage ventures. Applicants must:
- Be classified as micro, small, or medium enterprises (MSMEs).
- Have been in operation for no more than three years.
- Have started activity no earlier than January 1, 2024.
- Count the registration of the first employee as the official start date.
- Meet the localization percentage set by the Ministry of Human Resources and Social Development.
- Be at least 60% owned by MSMEs or individuals.
- Be fully Saudi-owned, except for certain approved activities.
- Operate in licensed economic sectors (unlicensed businesses are excluded).
Strengthening Saudi’s SME Ecosystem
By removing key financial obstacles, Estrdad aims to stimulate entrepreneurship, encourage innovation, and help startups transition into sustainable businesses. It also reinforces SMEs’ contribution to a diverse and prosperous national economy, one of the cornerstones of Vision 2030.
For Saudi founders and entrepreneurs, Estrdad provides more than just financial relief. It represents a strategic opportunity to reinvest resources into scaling, hiring, and innovating.
With a multi-billion riyal allocation and structured support over the coming years, the initiative positions Saudi Arabia as a regional leader in startup-friendly policies, ensuring new ventures have the tools and environment they need to thrive.
