RIYADH:Master developerSaudi Downtown Co. signed a memorandum of understanding withtheSmall and Medium Enterprises General Authority, also knownasMonsha’at,to develop projects in 12 cities around the Kingdom.
The agreement will support the Kingdom’s entrepreneurial ecosystem by creating business opportunities for the SME sector in line with the goals of Vision 2030, reported the Saudi Press Agency.
Saudi Downtown Co.,awholly-ownedsubsidiary ofthe Public InvestmentFund, willestablishurbancentersof sustainable economic and social impact in 12 cities–Madinah,Al-Ahsa, Al-Khobar,Buraidah,Taif, Arar, Hail, Tabuk,DumatAl-Jandal,Jizan, Najran, and Al-Baha.
To be spread over a 10 million sq. m area, the scheme willcontribute to stimulating the economy, improving the standard of living, and enabling opportunities in sectors like retail, entertainment, hospitality, tourism, and housing.
TheMoUwas signed by Nayef bin Saleh Al-Hamdan, acting CEO ofSaudi Downtown Co., andMonsha’atGovernor Sami bin Ibrahim Al-Husseinion thesidelinesofBiban23.
Al-Hamdan noted that the SME sector plays a vital rolein theeconomy’s diversification, various sector development, and job creation, as well asinincreasingthe contribution to the country’sgrossdomesticproduct.
SMEopportunitiesin retail sector
During the event, the Ministry of Commerce also discussed SMEopportunities in Ƶ’s retail sectorto help achieve the socioeconomic goals set by Vision 2030.
The ministry’s E-Commerce Council examined promising investment opportunities forSMEsin the retail sector, the largest female-empowering sector and the second largest non-oil economic sector in Ƶ.
In collaboration withMonsha'at, the council went over the enablers and incentives for entrepreneurs to invest in the retail sector.
As per the Kingdom’s Vision 2030, the retail sector plans to increase its proportion of modern trade to 80 percent and toprovide1 million employment opportunities to its locals.
In 2022, the aggregate SMEs in the retail sector reached more than440,000,whereasemployment exceeded 1.7 million people during that period.
During the fourth quarter of 2022, the sector's contributionto GDP was8.7 percent, reachingapproximately SR89.5 billion($23.83 billion).
COFE raises $15 million
COFE, an online coffee marketplace,successfullyraised$15 million of investment in its Series B funding roundduringBiban23.
Aramco-owned WAED Ventureswas the lead investor witha $500 millionventurecapital fund focused on tech-based startups.
The Riyadh-based VC firmeWTPArabia Capital alsoparticipatedin COFE’s Series B funding round.
The company has alsoattainedsignificant funding support from theeWTPCapitalinitiatedby Alibaba Group in the Middle Eastregion, in addition to the PIF.
Red Sea Farms to design, build greenhouses
Red Sea Farms, a sustainable science and tech company, also announced plans to design, build and operate greenhouses in all of Saudi Downtown Co.’s projects.
“The greenhouses will not only be sustainable and incorporate the latest technologies, but will also be facilities designed to enrich the visitor’s experience for the local communities in which these facilities will be located in addition to their economic benefits and cultural development” said Ryan Levers, CEO and co-founder.
In line with Vision 2030, the collaboration will examine ways to adopt sustainable large-scale farming techniques and develop sustainable urban living experiences in Ƶ.
