Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi- SMEs versus small overseas enterprises  Join our daily free Newsletter

MENAFN - Arab News - 17/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) The small and medium enterprises (smes) issue in the kingdom has been debated heavily in the last few years.

the commitment of custodian of the two holy mosques king abdullah to empower smes by incorporating the concept of knowledge-based economy has come at a time when saudi arabia is showing its readiness to facilitate all national and foreign stakeholders interested in trade and investment. investment in smes in saudi arabia is expected to grow to more than sr260 billion by the end of 2015.

the contribution of smes to the kingdom's gross domestic product could rise to 37 percent by the end of 2015 when growth in the number of licensed smes will reach to 2.5 million by end-2015 from 1.97 million as of january 2014.

while gloating over these impressive figures what we need to do is to draw a comparison between the saudi smes and their counterparts in developed or even emerging economies.

of course the situation in the kingdom is different. the size of smes is very small in comparison and all that they concentrate on are trade and construction and certain other sectors such as manufacturing and professional services.

when we zoomed into these smes' sectors we found them to be heavily relying on non-saudis. so basically smes in saudi arabia are largely dependent on non-saudis. if the idea is to develop or promote smes you may have to consider whether such a move will help in job creation or whether it will aggravate unemployment further.

so let us make a beginning by understanding the structure of our smes. it is true in developed economies smes make a visible contribution to gdp and account for a large share of employment generation but those economies rely heavily on local labor force whereas our smes depend largely on foreign labor. that is the big difference between smes in the kingdom and those abroad.

innovation is a key driver of growth of smes. this is something the kingdom seems to lag behind. what we have are mostly repair shops maintenance centers grocery stores and restaurants which are heavily dependent on labor force and very little or none on innovation and creativity.

we need to introduce incubators at universities and chambers of commerce and industry where they promote the culture of innovation and creativity. these are places where they support people who come up with their own inventions and help commercialize them.

if we do that only then we will be able to promote smes that are compatible with those in developed or even in emerging economies.

email: [emailprotected]/* */


 


Arab News




  MENA News Headlines
 Dec 21 2014 - Omani OPWP awards Singaporean firm USD250m water projectMENAFN
(MENAFN) Oman's state-owned Oman Power and Water Procurement Company (OPWP) announced it has awarded a consortium led by the Singaporean Hyflux Ltd and National Power and Water Co a USD250 million ...

 Dec 21 2014 - Oman's SGRF boosts acquisition of local assetsMENAFN
(MENAFN) Oman's State General Reserve Fund (SGRF) announced it has boosted its buying of assets in the local market, particularly shares, due to the massive drop in the prices as the result of the ...

 Dec 21 2014 - Oman's Napco revenue hits USD34.95m in 9MMENAFN
(MENAFN) Oman's National Aluminum Products Company (Napco) announced it has registered a net profit of over OMR USD1.25 million as well as revenues totaling to USD34.95 million during the ...

 Dec 21 2014 - Dubai's Nakheel to restart USD550m Vietnam projectMENAFN
(MENAFN) Nakheel, the Dubai property developer, announced that it will propose a plan to restart a delayed project in Vietnam's northern province of Quang Ninh, which has an estimated value of USD550 ...

 Dec 21 2014 - Etihad Cargo records tonnage high in NovemberMENAFN
(MENAFN) Etihad Cargo, the freight division of UAE flag carrier Etihad Airways, announced it has carried 53.292 tons of cargo in November across its global network, thus achieving an all-time record ...

 Dec 21 2014 - Cold weather forecastJordan News Agency
(MENAFN - Jordan News Agency) The weather is expected to be relatively cold in most parts of the Kingdom and fair in the Jordan valley and Aqaba.Clouds will build up during the evening increasing ...

 Dec 21 2014 - Israeli warplanes bomb southern Gaza StripJordan News Agency
(MENAFN - Jordan News Agency)  Israeli warplanes bombed dawn Saturday, east of Khan Younis in the southern of Gaza Strip.This attack is the first since the end of the Israeli aggression on the Gaza ...

 Dec 21 2014 - Egypt to reopen Rafah crossing: OfficialJordan News Agency
(MENAFN - Jordan News Agency)   Egypt will reopen the Rafah border crossing point with the Gaza Strip during the next two days for traffic heading in both directions.The head of the Palestinian ...

 Dec 21 2014 - Ombudsman Bureau refers 20 cases to ACC: OfficialJordan News Agency
(MENAFN - Jordan News Agency)  Ombudsman Bureau has referred a number of complaints involving suspicions of corruption to the Anti-Corruption Commission (ACC).The Ombudsman Bureau's Acting President, ...

 Dec 21 2014 - King departs on a working visit to BahrainJordan News Agency
(MENAFN - Jordan News Agency)  His Majesty King Abdullah II left home on Saturday on a working visit to the Kingdom of Bahrain, where he is expected to meet the Bahraini King, Hamad Ibn Isa Al ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help