Monsha'at Unveils Second Edition Of Estrdad Initiative To Support Startups With SAR 1.5 Billion Refunds

The Small and Medium Enterprises General Authority, known as Monsha'at, has introduced the second phase of the "Estrdad" initiative. This programme aims to refund government fees amounting to SAR1.5 billion. It is designed to assist startups in their initial three years, boost the business climate, and improve their sustainability and competitiveness.

Eligible small and medium enterprises (SMEs) can register from the launch date until the end of 2026. The disbursement of funds will begin once SMEs qualify and continue until 2028. This initiative seeks to bolster financial stability and promote growth among these businesses.

This edition includes a new feature: patent registration refunds. This addition encourages innovation among national enterprises. The conditions for this are detailed on the initiative’s website: Estrdad.monshaat.gov.sa.

The initiative covers refunds for ten types of fees, including expatriate fees, commercial registration, municipality licenses, Saudi Post subscriptions, chambers of commerce memberships, trademark registration, and economic activity licenses. The refund starts at 80% for expatriate fees.

To qualify for this initiative, applicants must meet specific criteria. They should be classified as micro, small, or medium enterprises that have been operational for no more than three years. The business activity must have commenced no earlier than the registration of their first employee.

Additionally, companies must adhere to localization percentages set by the Ministry of Human Resources and Social Development. Micro, small, or medium enterprises or individuals should hold at least 60% ownership in the company.

Ownership Requirements

The enterprise must be entirely Saudi-owned unless specified otherwise under the initiative’s terms. Applications from entities not engaged in licensed economic activities will not be accepted.

This initiative aligns with digital transformation efforts by providing a unified digital experience for verifying eligibility and processing refunds efficiently. It highlights advancements in government services supporting entrepreneurship.

The "Estrdad" initiative demonstrates leadership's commitment to fostering a supportive business environment. It aims to enhance SMEs' role in building a diverse economy aligned with Saudi Vision 2030 objectives.

With inputs from SPA