The Ministry of SMEs and Startups and the Embassy of the Republic of Korea in Saudi Arabia announced on the 25th that they will begin recruiting participant corporations for the 'Support Project for Small and Medium Enterprises' advancement into the Middle East' through collaboration with the Saudi government starting July 7.
Saudi Arabia has emerged as a market with high growth rates and great potential; however, it has been a difficult market for small and medium enterprises to enter due to stringent government regulations and a heterogeneous culture and religion. As of 2024, Saudi Arabia's GDP is $1.1 trillion (Hanwha 1,494 trillion won), which is the largest in the Middle East, while small and medium enterprises' exports to Saudi Arabia account for just $1 billion (Hanwha 1.3587 trillion won), or 0.9% of total small and medium enterprises' exports.
The Ministry of SMEs and Startups and the Embassy of the Republic of Korea in Saudi Arabia emphasized the need for active cooperation with the local government and the selection of companies for Saudi advancement that reflects market demand. Accordingly, a support project has been planned and promoted in which the Saudi government directly selects the target companies.
The recruitment areas for the support project are ▲artificial intelligence (AI) ▲bio-health ▲tourism and entertainment ▲smart city and construction, totaling four sectors, and 27 corporations will be selected. Eligibility for support is that, in the case of the AI sector, only startups established within the last 10 years can apply, while other sectors can apply if they are small and medium enterprises.
The Ministry of SMEs and Startups and the Embassy of the Republic of Korea in Saudi Arabia plan to complete the application and registration by July 24, conduct document evaluation at the end of July, and hold a face-to-face evaluation attended by Saudi experts in August to select the final participant corporations.
The selected corporations will visit Saudi Arabia at the end of September to participate in visits to local government agencies, interviews, investment attraction briefings, networking events, and more to advance into the local market and secure business opportunities.
Lee Soon-bae, the Global Growth Policy Officer at the Ministry of SMEs and Startups, noted, "Saudi Arabia is a market that has market size, purchasing power, and growth potential, and it is a market that our small and medium enterprises must enter for globalization and diversification of export markets." He added, "The Ministry will actively support small and medium enterprises to become the main players in the second Middle East boom by forming a K-team with the Korea Federation of Small and Medium Enterprises and other small and medium enterprise-related organizations, as well as the Embassy of the Republic of Korea in Saudi Arabia and local support organizations."