Asharqia Chamber held a workshop on Thursday, 31 May 2018, in cooperation with the Authority and the Ministry of Labor and Social Development.
The Small and Medium Enterprises Authority (SME) reviewed 6 strategic pillars of the Authority to develop the retail sector.
During the workshop, SME reviewed the development of regulations and laws to facilitate business and work on the rehabilitation of citizens to work in the sector and support the transition to the modern store system, which goes through to ensure the empowerment of local entrepreneurs either by facilitating procedures or provide investment opportunities in front of them. The strategy ends with stimulating innovation to develop existing services, remove barriers to innovators and create opportunities for citizens and small and medium enterprises in the retail sector in order to enhance local content and increase contribution to GDP.
Modern stores
SME's Retail Sector Manager, Mahmoud Mazi, said that the Authority aims at improving the retail sector through improving the rules and regulations, regulating the retail sector and enhancing transparency in order to activate the growth potential of the private sector. It also aims to the rehabilitation of the Saudi workforce and the development of models and mechanisms of work to move from traditional shops to modern stores. He pointed out that the target is to reach 80% of the modern stores by 2030.
Rapid gain initiatives
Mazi added that the increasing demand for products contributes in increasing domestic output through diversification of supply and improving customer experience by following the latest global methods and techniques in different sectors and opening up new markets such as: (tourism, pilgrimage and furnishing shops).
He divided the Authority's initiatives into a number of pillars (systems, education, transformation, empowerment, innovation, localization of the sector). Modern stores.
Absorbing requests
Nawaf Al Mutravi, from the Social Development Bank, reviewed the efforts and preparations of the Bank in settling the 12 retail activities.
He said that there have been coordination and preparations of the partners to accommodate the requests for the project, and the establishment of a special funding path within the bank's tracks as well as processing the path of the concession to match the commercial activities targeted.
He added that the size of the Bank's current portfolio of activities targeted at localization is 12 activities, by about 3733 projects with funding of SR 1.38 billion.
Clothing stores represent about 33% of the total projects supported, while cars and motorcycles shops represent 30%. Medical devices and equipment stores that represent 12%, household appliances represent 5%, electronics and electronics represent 4%. While the confectionery shops do not exceed 0.2%, as well as building materials stores by 0.8%.
Financing and capacity building
He pointed out that the system of services led by the bank in cooperation with partners includes the following: first, funding, whether for a new project or the development of an existing project. Second, it includes capacity building through training programs, counseling, guidance, guidance, follow-up and evaluation. Then, it includes business development through developing innovative business models, simplifying existing models, and developing value chains for activities.
