Saudi Arabia Launches $400M Fee-Refund Scheme for Startups & SMEs

Saudi Arabia’s Small and Medium Enterprises General Authority (Monsha’at) has launched the second edition of the Estrdad initiative, allocating SR 1.5 billion (approximately $400 million) to reimburse government fees for startups and SMEs during their first three years of operation. The refund covers 10 categories of expenses, such as commercial registration, municipality licences, expatriate levies, and - for the first time - patent registration. Eligible businesses must be micro, small, or medium-sized, locally owned (at least 60% Saudi ownership), and must have begun operations on or after January 1st, 2024. Applications are open through the end of 2026, with refunds issued through 2028 via a new digital application portal that handles eligibility checks and disbursements. Estrdad complements existing SME support tools, including the Kafalah loan guarantee programme, soft loans via the SME Bank, and tourism-related finance. Early indicators reflect momentum: in Q1 2025, SME registrations rose 48% year-on-year, and venture capital investment in local startups reached $987 million, up 72% from 2022. SMEs now contribute 21.9% of GDP, surpassing earlier Vision 2030 targets.