Monsha’at and Bahrain’s Tamkeen Sign MoU at Biban24

Riyadh, November 06, 2024 — The Saudi General Authority for Small and Medium Enterprises (Monsha’at) signed a memorandum of understanding (MoU) with Bahrain’s Labor Fund (Tamkeen) at the Biban24 Forum in Riyadh. The agreement aims to strengthen economic, trade, and investment cooperation in the small and medium enterprise (SME) sector across both countries, marking a significant step in regional collaboration under Saudi Arabia’s Vision 2030.

Context and Background

The MoU was signed by Sami bin Ibrahim Al-Hussaini, Governor of Monsha’at, and Maha Mofeez, Chief Executive of Tamkeen. The Biban24 Forum, a premier entrepreneurship event in the region, provided the platform for this strategic partnership. This collaboration aligns with Saudi Arabia’s ongoing efforts to diversify its economy and empower SMEs as key drivers of growth, in line with Vision 2030 objectives.

Key Details

The MoU focuses on several areas of cooperation, including the Franchise Program, which will facilitate the exchange of franchise brands for local and international expansion. It also emphasizes talent development and capacity building through the Global Practical Training Program, enhancing skills and accelerating professional growth via international training experiences with leading global companies.

Additionally, the agreement supports information exchange on policies, measures, and practices aimed at empowering SMEs and startups, while promoting partnerships and investments among specialized supporting entities in both countries. This comprehensive approach is designed to create a robust ecosystem for entrepreneurs.

Implications and Impact

This partnership is expected to bolster the SME sectors in both Saudi Arabia and Bahrain, fostering innovation and creating new opportunities for entrepreneurs. By facilitating the exchange of franchise brands and providing international training, the MoU will help SMEs scale up and compete globally. It also strengthens bilateral ties and sets a precedent for future collaborations in the region, contributing to economic diversification and job creation.

Vision 2030 Alignment

This MoU directly supports Saudi Arabia’s Vision 2030 by enhancing the SME sector, which is a crucial pillar for economic diversification and sustainable development. Through international partnerships like this, the Kingdom continues to position itself as a global leader in entrepreneurship and innovation, driving forward its ambitious reform agenda.

20 Questions

Q1. What is the purpose of the MoU signed between Monsha’at and Tamkeen?

A1. The MoU aims to bolster economic, trade, and investment cooperation in the SME sector across Saudi Arabia and Bahrain, focusing on franchise programs, talent development, and information exchange to empower startups and SMEs.

Q2. Who signed the MoU on behalf of Monsha’at?

A2. The MoU was signed by Sami bin Ibrahim Al-Hussaini, the Governor of Monsha’at, representing the Saudi General Authority for Small and Medium Enterprises.

Q3. Who signed the MoU on behalf of Tamkeen?

A3. Maha Mofeez, the Chief Executive of Bahrain’s Labor Fund (Tamkeen), signed the agreement on behalf of the organization.

Q4. Where was the MoU signed?

A4. The MoU was signed at the Biban24 Forum in Riyadh, Saudi Arabia, a major event for entrepreneurs and SMEs in the region.

Q5. What is the Biban24 Forum?

A5. The Biban24 Forum is a premier entrepreneurship event in Saudi Arabia that brings together innovators, investors, and policymakers to support SME growth and foster collaboration.

Q6. What are the key areas of cooperation under the MoU?

A6. Key areas include the Franchise Program, Global Practical Training Program, information exchange on SME policies, and promoting partnerships and investments among supporting entities in both countries.

Q7. How does the Franchise Program benefit SMEs?

A7. The Franchise Program facilitates the exchange of franchise brands for local and international expansion, helping SMEs grow their reach and competitiveness in new markets.

Q8. What is the Global Practical Training Program?

A8. It is a program that enhances skills and accelerates professional growth through international training experiences with leading global companies, building a skilled workforce for SMEs.

Q9. How will information exchange help SMEs?

A9. Information exchange on policies, measures, and practices will enable both countries to adopt best practices, improve SME support systems, and foster a more conducive business environment.

Q10. What are the expected economic benefits of this MoU?

A10. The MoU is expected to boost SME sectors in both countries, create jobs, drive innovation, and enhance economic diversification, contributing to sustainable growth.

Q11. How does this MoU align with Saudi Vision 2030?

A11. It supports Vision 2030 by empowering SMEs, which are vital for economic diversification, job creation, and reducing dependence on oil revenues.

Q12. What role does Monsha’at play in Saudi Arabia?

A12. Monsha’at is the General Authority for Small and Medium Enterprises, responsible for developing and supporting the SME sector in line with Vision 2030 goals.

Q13. What is Tamkeen’s role in Bahrain?

A13. Tamkeen is Bahrain’s Labor Fund, dedicated to making Bahrain’s private sector the engine of economic growth by supporting SMEs and enhancing workforce skills.

Q14. How will this MoU strengthen Saudi-Bahrain relations?

A14. By fostering collaboration in the SME sector, the MoU deepens economic ties, promotes mutual investment, and enhances regional cooperation between the two kingdoms.

Q15. What are the implications for entrepreneurs in both countries?

A15. Entrepreneurs will gain access to new markets, training opportunities, and partnerships, enabling them to scale their businesses and innovate more effectively.

Q16. How does the MoU promote investment?

A16. It encourages partnerships and investments among specialized supporting entities, creating a more vibrant ecosystem for startups and SMEs to attract funding.

Q17. What is the significance of signing at Biban24?

A17. Biban24 provides a dynamic platform that showcases commitment to entrepreneurship, allowing for high-visibility signing that underscores the importance of SME collaboration.

Q18. Will this MoU lead to more joint programs in the future?

A18. Yes, it lays the groundwork for further collaborations, as both parties are committed to expanding cooperation in areas like training, franchising, and policy development.

Q19. How does this MoU benefit the wider region?

A19. It sets a model for regional integration, promoting economic growth and stability by leveraging the strengths of both Saudi Arabia and Bahrain in the SME sector.

Q20. What are the next steps after signing the MoU?

A20. Both organizations will develop action plans to implement the agreed initiatives, including franchise exchanges, training programs, and regular information sharing to ensure tangible outcomes.

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