Saudi Arabia Launches SAR1.5 Billion Estrdad Initiative to Refund Fees for Startups and SMEs Program to ease financial burdens aims to boost innovation, job creation, and long-term sustainability.
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Saudi Arabia has unveiled the second edition of its Estrdad initiative, pledging SAR1.5 billion (around $400 million) to refund government fees for startups and small and medium enterprises (SMEs). The program, led by Monsha'at, the General Authority for Small and Medium Enterprises, is designed to reduce operating costs, stimulate entrepreneurship, and accelerate the Kingdom's broader Vision 2030 diversification agenda.
The initiative will refund ten categories of government fees, including up to 80 percent of the expatriate labor levy, commercial registration, municipality licenses, Chamber of Commerce subscriptions, trademark and patent registrations, and other essential costs. The addition of patent registration in this edition highlights a stronger focus on innovation and intellectual property protection.
To qualify, enterprises must be micro, small, or medium-sized, with an operational history of no more than three years. Eligible firms must also meet Saudization requirements and hold valid economic activity licenses. Registration is open until the end of 2026, with refunds to be disbursed in stages through 2028.
Estrdad builds on the success of its first edition, launched in 2018, which supported over 27,000 establishments, generated more than 89,000 jobs, and achieved a 75 percent sustainability rate among participating businesses. Officials believe this second edition will deepen that impact by expanding the range of refunded fees and reinforcing the ecosystem for early-stage ventures.
The program represents a significant step in the Kingdom's drive to empower local entrepreneurs, attract investment, and build a competitive private sector. By reducing initial barriers to entry, Estrdad is expected to create a more dynamic business environment where startups can grow, innovate, and contribute to Saudi Arabia's long-term economic transformation.
