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Al Batal: The kingdom has planned to rise small and medium institutions contribution in the local production to 35%
20/10/2016


    In the opening session of the Forum of small and medium institutions
    Sulaiman: We are optimistic about the future and our goal is that the contribution of small and medium institutions will reach 2400 billion rials
    Ataishan: small and medium institutions sector is promising and needs procedural and financing incentives

    Secretary of the province of the Eastern Region, Dr. Khalid bin Mohammed Al Batal, has stressed the importance of small and medium institutions, including the target of sustainable progress, economic, with its social and human dimensions, noting that these institutions next major economic value in the local domestic product, play a positive role can not be ignored in the progress process .
   Al Batal in the opening speech of the Forum of small and medium institutions, which was organized by Asharqia Chamber yesterday, Wednesday, October 19, 2016, on behalf of His Royal Highness Prince Saud bin Nayef bin Abdul Aziz, "The vision of the Kingdom 2030 has paid great attention to small and medium institutions, so that it planned to rise in its contribution to to 35%, "adding that the big responsibility that require the involvement of everyone in their investigation.
     Al Batal pointed, to what they offer state of the support and care of large and small and medium institutions, recently created by the General institutions for small and medium projects to organize and patronize these institutions according to best international practices.
    For his part, Dr. Ghassan Al Sulaiman pointed that the importance of small and medium institutions lies in its ability to move the national economy, saying that its contribution to the local production is now weak does not exceed 20%, estimated at 600 billion riyals , it is supposed to double to 35% which represents 2 400 billion riyals, which is the target set by the Kingdom vision 2030 to become one of the top 15 countries in the world economies.
    He Sulaiman, optimism about the future of small and medium institutions, as compared to the achievements of other countries, as the area is available because the Kingdom is up to that level, pointing that the contribution of small and medium institutions sector in the local production of the UAE amounted to 36%, and the rate of contribution to the states European Union 58% as the sector of 67% of the workforce in the EU, and 88%, both in Chile and South Korea.
    He pointed that to establish a similar body Japan is the model, which started operations since 1948, ie 68 years ago and are working in this field, while we are still at the beginning of the path, and we need some time), explaining that the committee is not the only factor in this regard, but we need the support of others, we need the support the Ministry of Health by patronizing small health institutions, and the Ministry of Agriculture to take care of small agricultural and other institutions.
    He said that small enterprises are the foundation engine in the global economies, they constitute more than 99% of the number of establishments operating in the Kingdom.
     said Sulaiman The authority is working to communicate with all parties for the development of all systems related to removing barriers that limit institutions growth, which are set by the four elements: (bureaucracy , funding, and access to the market, the competition to attract the human capacity).
      He stated that commercial coverup file moved from the Ministry of Labor to the Ministry of trade and investment and that the Committee is working to find suitable and comprehensive solutions to avoid this phenomenon .. pointing at the existence of a specialized department concerned to address all the special problems of small companies in collaboration with government authoroties to find appropriate solutions, some of which will be resolved in short period of time, and some of them require some time. One of the problems that the phenomenon of concealment as increase in the retail sector with 40% and 40% construction and other sectors 20%.
   Al Sulaiman said that the international statistics indicate that 10% of small institutions achieving successes in the first two years, while 90% of them have faild. He called for creating a culture of transforming failure into success, Committee is working to reduce the failure rate of 90% to 67% in the next stage.
     He stressed the keenness of the Committee to address the business environment for small installations feminism, through communication with the concerned authorities, admitting the existence of a shortage of women cadres of the Board of Directors of the Committee, also stressed the need for integration between big and small companies, which have achieved great successes in countries such as Japan and South Korea .
    Al Sulaiman said during the discussion that followed the opening of the forum that the Board has multiple mechanisms for communicating with funders locally and abroad, we do not seek to intervene in financial support, and does not want to cancel the risk of small installations element. He explained that the Committee is working to improve and increase the amount of the post to ensure the program ( implemented by local banks) in financing small and medium institutions of up to 20% with the vision 2030 instead of the current rate that does not exceed 2% noting that the bank financing for small businesses in the developed countries of up to 30%, idea of spotting an Award for supporting the best small and medium institutions, pointing to the importance of forming an information center to be available for investors to determine investment opportunities in the most profitable sectors.
     Al Sulaiman said that chambers of commerce as a channel of communication between small and medium institutions on the one hand and the Committee on the other hand, revealing a tendency   to increase government procurement   from small and medium institutions, to be along the lines of developed countries and neighboring such as Oman (20%), praising the experience of Saudi Aramco in this field.
    The Sulaiman having negotiations with the Ministry of Labor and Social Development to put controls in full Saudization of some economic sectors in the process, calling on various government agencies to take into account the small and medium institutions in some of the rules and regulations . He explained that the Committeeis seeking to have an opinion in many of the laws to fit in with the development of these institutions.
     For his part, stressed the chairman of Asharqia Chamber of Commerce, Abdul Rahman bin Saleh Al Ataishan, that the Kingdom has taken pioneering steps in the strengthening of small and medium enterprises by giving them multiple incentives procedural and funding, within the strategic direction aims because these projects become by 2030 one of the main pillars of economic development in the country, pointing a high proportion of the contribution of small and medium institutions in general, the local production of the kingdom to 20%, and the percentage of its contribution, in particular in the none oil local production is 33%.
    Al Ataishan, (The bet today on small and medium institutions, being one of the main engines of economic growth, including inspecting increase and diversify production and coherence and integration between economic sectors and each other as well as their role in job growth and the diversification).
     Ataishan pointed that the Chamber has paid great attention to these projects by launching a series of programs and seminars and workshops designed to develop and enhance its performance to attract more capital to it, in addition to the launch of the award for the best small and medium institutions to encourage it to compete and improve in the local market.
    First session
    In the first session, titled (hopefully role of agencies and funding organizations and supporting small and medium enterprises) suggested the chief executive of Aramco Center for Entrepreneurship (promising) Engineer Sami concrete, several points to support small   and medium institutions, including: the adoption of products and services in the supply chain for companies major various government agencies, and the development of entrepreneurs through training programs and outstanding guidance, encourege the ethics of work, integrity, and commitment.
    Al Khurasani went on in a session chaired by the academic in business poineering and the head in Fiore projects Dr. Faisal Al Qhadi, stressing the need to support and encourage the appropriate funding programs and Venture Capital funds, and raise the number and level of incubators and accelerators work in the field of scientific and industrial innovation, and the development and adoption of regulations and supporting legislation for the sector of small enterprises and medium enterprises, and to provide statistical information to the market.
    And accept the concrete several projects contributed (and promising) in the creation or development as materially supported 78 projects by 288 million riyals, and was able to support the provision of 2500 job opportunities.
   The projects supported by (Waed ) in the eastern region have reached 68 projects, the Central Region 5 projects, and Western 5 projects.
     chief executive of the Prince Sultan Fund for Women Development Hassan Al Jasser talked about one fund initiatives that are doing complex that includes delegates from various circles aimed at ending the project registration procedures and extract the necessary permits for projects for women, noting that the initiative was suspended acceptance and intereaction of so many.
     Al Jasser said that (Bayader) is the first Women Business Incubator non profit organization in the Kingdom, is working on creating the right place to support and embrace the ideas and suggestions of businesswomen to improve creativity and ambition.
    Al Jasser pointed that the incubators aim to raise rates and the chances of success of promising projects for pioneers Saudi businesswomen, direct and contribute to the achievement of a favorable and appropriate for the work environment, especially in the first critical years of the project, and connect small industries to each other and to establish close communication between them in addition to providing a positive production community projects across the powerful are able to develop and grow in the future.
     About Bayader Al Jasser said that the incubator offers a flexible space for rent with a simple payment, whether offices or business executive units, and the specialized training in a variety of sectors (technical - Industrial - service), and consulting services in the technical and administrative areas of the projects incubated, and all the tools and office participation system and equipment. , as well as accounting and legal services, marketing and technology.
    As director of the development of entrepreneurship in Khalifa Yousef Al marshodi said that Fund aims to improve projects to create a generation of business pioneers citizens and cultivate and deepen a culture of business pioneering between them also supporting and improving small and medium institutions sector in the country in line with the vision of Abu Dhabi in 2030.
        Al marshodi Fund Services was launched , which is a local development government nonp rofit body organization in June 2007 with a capital of one million dirhams, and in July 2009 the capital raised to one billion dirhams in 2010 was the fund's capital raising of up to two billion dirhams.
    He pointed to the manufacture of funding means funding harmonious industrial projects with investment and development trends, organized by Abu Dhabi economic strategy, the program aims to cultivate and promote a culture of business and the development of the industrial sector's leadership, stressing that the program benefits the project from 3 support to 10 million dirhams with a grace period to 3 years and the repayment period to five years, with an interest rate of up to 3 percent.
    Al marshodi pointed that the Fund approved since the beginning of the launch of its services to fund 470 projects worth financing of 775.3 million dirhams, and distributed projects by geographical location Abu Dhabi occupied the largest proportion with 64 percent, and the eye is 21 percent and the Northern Emirates by 9 percent, and the Bank by 6 percent.
    Thr projects ratio up to 73 percent for males and 27 percent females, the shape of the agricultural sector accounted for 7 percent and industrial 25 percent and services 68 percent.
    Al marshodi explained that the Fund provided training services to 3,996 business pioneers since the beginning of its work through 290 training course, where trainees reached the proportion of 44 percent men and 56 percent women.
    The head of team in the Industrial Development Fund Bader Al Doayan of the fund in the industrial sector, which affirmed support for industrial development in the regions and cities promising development, raise the effective funding ratio to 75 percent
    Of the cost of the project instead of the maximum of 50 percent, and extend the repayment to the maximum of 20 years instead of 15 years.
    Al Doayan said that proportion to the number of loans in the most promising areas to the total number of fund loans to 14 percent in 2011, and 21 percent to 2015, and 54 percent in 2015.
    He pointed to products allocated to the fund of the small projects, such as: Department of small businesses, Kafalah program, and Bank loan program .
    He said that the cumulative number of loans by amount (end of 2015) amounted to a loan of 3924, which formed large projects 12 percent, and the middle 21 percent and 67 percent.
     Also, the cumulative value of loans by amount(end of 2015) of 129 billion riyals, big projects amounted for 71 percent, and the middle 17 percent, 12 percent and small.
    Al Doayan concluded his speech saying that the investment opportunities in the many and varied Kingdom regions, and the sources of financing is no longer a major obstacle to investors, so the decision to invest in any project is the same as the investor decision, before making an investment decision of funders request to borrow must ensure the following: Feasibility economic project, which intends to invest in, and knowledge of the risks associated with the sector in question, making sure to keep the integrity of the history of the investor, and a focus on value added products, the focus in the recruitment of qualified project management.
    Second Session:
    In the second session, titled (the future prospects of the emerging institutions) the Dean of King Fahd University of Petroleum and Minerals, Dr. Wael bin Abdul Hakim Al Mussa talked about (the role of universities in the business industry), he said that the world around us has become more unstable, and can not be predicted, and learning from failure, and watching risks, and overcoming the mystery, ruling the keys and the necessities for success. He said these capabilities or skills you need the mentality that vary with current teaching at many universities, pointing that the universities have an important role in supporting the communities or emerging companies, the system or so small geographical area, in terms of energy and activity and innovation.
    He stressed that students may become businessmen pioneers or have worked in other institutions, companies such as governments and big committees, and some studies noted that graduates of MIT and Stanford University, for example, have found a fledgling companies contributed total revenues estimated at 4.7 trillion dollars, on the other hand, the faculty members are playing an important role to continue the research and new innovations in addition to being in new business projects.. also, the universities provide the infrastructure for communities fledgling companies through academic programs, research laboratories, programs and activities leading and the offices of technology transfer. This office is working on licensing mechanisms and management of intellectual property, which is of great importance in providing communities fledgling companies
    He pointed that the licenses of patents in the US universities during the period between 96 AD and 2014 AD is estimated at about 80,000 patents resulted in 5000 the result of or arising of the company contributed to the creation of 3.8 million jobs, stressing that this wealth of supplying sources of universities is leading to the emergence of communities «membership fledgling companies around the major universities, such as silicon Valley and the Great Boston.
    Mussa pointing to King Fahd University of Petroleum and Minerals, said that they had developed strategic goals of its system of innovation and pioneering technical work to attract research centers and the development of national and multinational companies to the Dhahran valley Science of Technology (in the field of energy in particular), and building intellectual property in strategic technology areas to motivate technological leadership activities, as well as establishing an effective system for the transfer of technology, and the progress of a sustainable system to support innovation and business, and this is what has been achieved so far.
    He said that the University and through its system of innovative and entrepreneurial contributed to the support of many of the projects that some companies become market in collaboration with our partners.
    Chief executive of Dhahran Technology Valley Craig Smith said that the creativity regions in the world where all the competing companies gather the aim of spreading awareness about creativity and how the new innovation that serves the world in various fields.
    Smith pointed out that the world I in the 70s needed to develop technologies to improve the discovery of space rockets, and these techniques have evolved to be a publicly services to communicate a variety of social network sites, this striking innovation.
    suggested Smith saying that there are many universities and research centers and the capital that serves to create a quality infrastructure in the field of the digital world in order to produce software that serves the world, noting that the Saudi market is open and big and has multiple fields to invest in this world, stressing that innovation cost is high and the returns are high for humans and business.
    For his part, , Vice Chairman of the valley of Makkah technique, Dr. Nabil bin Abdul Qadir Koshak, displayed the experience of the valley of Mecca for technology, and how it has become a motivating and supportive environment for starters, in teaching and research and innovation and ensuring the transfer of knowledge and technology, he said that the company began to produce technology, and we achieve our goal to move from user category in the technical areas to producers category, So we introduced the supportive innovative programs and opened innovation centers, business incubators, pointing that it did not stop at this point, but was always next to these programs is the subject of marketing, according to the values of education and marketing.
    Koshak explained the programs that support the valley of Mecca emerging companies, pointing that they are three, the first program is the technical innovation center, and the second is fast business, this program is based on sales in terms of counseling guide and explain how to enter the market, while the third is a capital program to accelerated growth companies.
    Koshak, classified the fields of the focus of the company to the special focus of interest for example in managing crowds, transportation, logistics and other national, such as medicine and information technology, biotechnology, genetic engineering and others, Koshak, concluded by saying that the valley of Mecca company now has many emerging companies and offers several products with the Logo made in Makkah.

Al Batal: The kingdom has planned to rise small and medium institutions contribution in the local production to 35%

In the opening session of the Forum of small and medium institutions