SAUDI ENTICES SMES TO HELP CREATE ENTERTAINMENT HUB

Small and medium enterprises (SMEs) in Saudi Arabia are being encouraged to contribute to the country's burgeoning entertainment industry.

Mohammed Bin Salman Foundation (Misk Foundation) and Silicon Valley-based venture capital firm 500 Startups have also identified 20 start-ups from the kingdom and the wider region to receive funding and mentorship.

The programme will consist of 14 weeks of mentorship and workshops, emphasising on growth hacking techniques, product design, and fundraising. In addition to the educational component of the programme, participants will have a unique opportunity to make long-lasting connections with investors and corporate partners from the region, according to 500 Startups.

This is the second batch of start-ups that will go through the process. Batch 1 of the Misk 500 Accelerator Program consisted of 19 start-ups, which took part in the 16-week programme in Riyadh. Participants came from various parts of the MENA region, such as Saudi Arabia, Algeria, Egypt, Kuwait, Palestine, and the United Arab Emirates.

Around 37% of these companies had at least one female founder. The programme concluded with a Demo Day, where start-ups gave a three-minute pitch to a packed room of over 200 attendees, which consisted of both investors and corporations from the region.

The General Entertainment Authority (GEA), also launched new licensing packages to increase SMEs’ contribution to the non-oil sector. The new package of licenses facilitates the process of obtaining official permissions for those wishing to launch projects by adopting the best technical practices.

GEA said it has developed legislations aimed at regulating and growing the kingdom’s entertainment sector through a set of easy and clear procedures, in order to position the country among the world’s top entertainment destinations and achieve the targets outlined in Saudi Vision 2030.

The new initiative will allow investors to obtain licenses by applying via a dedicated online services platform, with simple procedures.

GEA is tasked with supporting SMEs and increasing the proportion of foreign direct investment in the entertainment sector. It held an event in Riyadh in September, attended by hundreds of potential investors, stakeholders, and SMEs.

Other major corporations are also creating a robust environment to nurture SME development and enhance the start-up culture in the kingdom.

In October, Saudi British Bank (SABB) said it is teaming up with HSBC to open the regional version of the ‘C3 Social Impact Accelerator’ to Saudi start-ups for the first time.

The programme aims to provide training and investment opportunities to SMEs focused on products and services that have a positive social impact on the world.

“The C3 Social Impact Accelerator programme helps social entrepreneurs achieve financial sustainability and solve major social challenges at scale. Launched as a pilot last year between HSBC and Consult and Coach for a Cause (C3), the bank reached out to its local partner SABB to help extend the programme to Saudi entrepreneurs,” SABB said.

C3 and HSBC have expanded the programme to eight countries in the MENAT region this year. A total of 40 semi-finalists from Saudi Arabia, UAE, Kuwait, Oman, Bahrain, Egypt, Algeria and Turkey will be selected from hundreds of applicants to receive one-on-one expert support. To be eligible, applicants must be revenue-generating and must contribute to at least one of the UN Sustainable Development Goals. Applications closed at the end of October.

The C3 Social Impact Accelerator for existing start-ups compliments SABB and King Abdullah University of Science and Technology’s (KAUST) Taqadam accelerator programme, which helps young entrepreneurs take their first steps into business.

The mentorship-driven, hands-on multi-university start-up accelerator is developed and managed by the KAUST Entrepreneurship Center, in collaboration with SABB. The programme helps potential university-based entrepreneurs turn projects into prototypes and ideas into businesses.

Given the focus on entrepreneurship, Saudi start-ups have begun gaining traction and catching the eye of venture capital firms. Among them is Nala, a Saudi-based healthtech start-up, which secured USD 1 million in its first financing round to help grow its user base, further strengthening its position as the region’s top digital health service. The round was led by Dubai-based AlAraby Investment, which invests in high-growth companies.

More than 50,000 people have used Nala, and the number is growing exponentially. Dozens of licensed doctors have helped in the development of the new platform. With this new technology, patients can now receive instant medical diagnoses with extreme precision, thus reducing human error. It is currently available through Nala’s mobile app.