In Saudi Arabia, the winds of change are also blowing on entrepreneurship
Audio 02:24
A general view of Riyadh, Saudi Arabia.
(Illustrative Image) AP - Nariman El-Mofty
By: Nicolas Keraudren Follow
2 mins
The local entrepreneurial sector is particularly benefiting from the opening initiated in 2016 in Saudi Arabia.
It is now much easier to open a business today, but some challenges still remain.
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During a Tech event in Riyadh, Abdulrhman Alkhulifi presents his application to potential investors.
This young 28-year-old Saudi is the co-founder of a start-up in the world of education.
According to him, it has never been so easy to start a business in Saudi Arabia.
“
We have an organization in Saudi Arabia called the SME Authority.
It allows us to launch our start-up, to obtain reductions, and even to be exempted from government fees.
Training is also provided.
And that didn't exist before 2016.
"
The creation of this authority coincides with the launch of Saudi Arabia's Crown Prince Mohamed bin Salman's Vision 2030.
This strategy aims to diversify the kingdom's economy, which is still dependent on oil revenues.
"
Small and medium-sized enterprises play a big role in Vision 2030,
" says Hattan Ahmed, director of entrepreneurship at King Abdullah University in Jeddah
.
There is now a clear desire to increase the contribution of SMEs from 20% to 35% of GDP by 2030. And we see that these start-ups are becoming SMEs that play a significant role for the economy.
»
Drop in unemployment
The development of the entrepreneurial fabric also promotes local employment.
The unemployment rate for Saudis is also at its lowest for almost a decade in this country where more than half of the population is under 30 years old.
The social and religious reforms implemented in the kingdom also promote this dynamic.
Sara Altuaijri is the co-founder of one of the first vegan cafes in Riyadh.
This 28-year-old Saudi woman launched her business at the end of last year.
“
Men used to have more opportunities because they could
network
, drive and do whatever they wanted on their behalf.
Women, we certainly had the possibility of going to specific entities to fill out papers.
But now we are completely independent of that.
The country gave us this independence.
I can drive, I can go anywhere to fill out my papers.
I don't need a man to do this anymore.
So it helps a lot to start a business
.
»
In Saudi Arabia, however, the unemployment rate for women is still much higher than that for men, even if it is falling.
About 22% of Saudi women are unemployed compared to nearly 6% for Saudi men, according to the latest available statistics.
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To read also: Saudi Arabia will host the regional headquarters of 44 multinational companies
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