In this Statute, the following words shall have the meanings assigned thereto, unless the context requires otherwise:
Monshaat: General Authority for Small and Medium Enterprises.
Statute: Statute of the General Authority for Small and Medium Enterprises.
Board: Monshaat’s board of directors.
Governor: Monshaat’s governor.
SMEs: Small and medium enterprises.
1- The Authority enjoys public legal personality and financial and administrative independence, and is organizationally linked to the Minister of Commerce and Investment.
2- The headquarters of the Authority is located in the city of Riyadh, and it may establish branches and offices within the Kingdom.
The Authority aims to organize the business sector in the Kingdom, support its development, and nurture it, in accordance with the best global practices; to enhance the productivity of these establishments, increase their contribution to the Gross Domestic Product, and expand the absorptive capacity of the Saudi economy, which leads to job creation and the provision of employment opportunities for the national workforce and the localization of technology. The Authority undertakes the following tasks and responsibilities:
1- Defining, classifying, and evaluating establishments.
2- Preparing a national strategy for establishments, monitoring its implementation after approval, and developing action plans and timelines for it, in coordination and cooperation with relevant entities in the public and private sectors.
3- Proposing laws, regulations, and policies related to the development and support of establishments, and following up on their application after approval.
4- Working to diversify financial support sources for establishments, cooperating with public and private entities that support them, and stimulating initiatives in the venture capital sector.
5- Establishing policies and standards for financing projects classified as small and medium-sized enterprises, and coordinating with financing entities to secure loans approved by the Authority.
6- Providing administrative and technical support to establishments and assisting them in developing their administrative, technical, financial, marketing, human resources, and other capabilities.
7- Supporting the establishment of specialized financing companies, activating the role of banks and lending funds, and encouraging them to play a larger and more effective role in financing and investing in establishments.
8- Creating and supporting necessary programs for the development of establishments.
9- Establishing comprehensive service centers for establishments; to issue all regulatory requirements for them and similar matters through the actual and electronic participation of relevant public and private entities.
10- Working to remove administrative, organizational, technical, procedural, informational, and marketing impediments facing establishments, in cooperation with relevant entities.
11- Creating and organizing technology incubators and business incubators.
12- Developing programs and initiatives to create investment opportunities for establishments and promoting them, and working to transfer and localize relevant technology to enhance the performance and productivity of these establishments, including supply chains.
13- Cooperating with ministries, authorities, and government entities, as well as international organizations regarding the Authority's competencies.
14- Organizing conferences, seminars, meetings, internal and international exhibitions, and other events related to establishments, participating in them, and working to activate their results and recommendations, in accordance with the applicable regulatory procedures.
15- Preparing studies, research, statistical surveys, and reports related to the business sector.
16- Preparing, implementing, and supporting programs and projects to promote the culture and spirit of freelance work, entrepreneurship, initiative, innovation, research, and building a positive culture among community members.
17- Deleted.
1- A Board of Directors shall be formed for the Authority as follows:
A- Minister of Commerce and Industry Chairman
B- Governor of the Authority Member
C- Representative from the Ministry of Finance Member
D- Representative from the Ministry of Commerce and Investment Member
E- Representative from the Ministry of Economy and Planning Member
F- Representative from the Ministry of Labor and Social Development Member
G- Representative from the Ministry of Education Member
H- Representative from King Abdulaziz City for Science and Technology Member
I- Representative from the Saudi Central Bank Member
J- Representative from the Saudi Credit and Savings Bank Member
K- Representative from the Saudi Industrial Development Fund Member
L- Representative from the Human Resources Development Fund Member
M- Representative from the Council of Saudi Chambers of Commerce and Industry Member
N- Two individuals interested in the activities of establishments, appointed based on a proposal from the Chairman of the Council Members
O- Representative from the Ministry of Energy, Industry, and Mineral Resources
- Representative from the Ministry of Environment, Water, and Agriculture
The ranks of the representatives of government agencies must not be less than (fourteenth) or its equivalent, and the appointment of the members of the Council and their renewal - except for the Chairman of the Council and the Governor - shall be issued by a decision from the Council of Ministers, and their membership in the Council shall be for a period of three years, renewable once, and their remuneration shall be determined by a decision from the Council of Ministers.
The Council is the supreme authority of the entity, responsible for overseeing its affairs, managing its operations, and directing its matters, as well as establishing the general policy it follows. It makes all necessary decisions to achieve its objectives within the framework of the regulations, and it has, in particular, the following powers and competencies:
1- Overseeing the implementation of the tasks assigned to the entity.
2- Approving the policies and plans that achieve the entity's goals.
3- Issuing administrative and financial regulations that govern the entity – in coordination with the Ministry of Finance and the Ministry of Civil Service – and other internal regulations.
4- Establishing the organizational structure of the entity and submitting it for approval according to the applicable legal procedures.
5- Approving the establishment of branches and offices of the entity within the Kingdom.
6- Approving the criteria for classifying establishments, and the incentives and benefits determined by the regulations.
7- Appointing an external auditor and an internal financial controller.
8- Approving the draft budget of the entity and its final accounts and the auditor's report; in preparation for its approval according to the applicable legal procedures.
9- Approving the annual report of the entity's activities.
10- Accepting donations, grants, endowments, and bequests in accordance with the applicable regulations.
11- Approving the conclusion of agreements, protocols, and contracts, in accordance with the applicable legal procedures.
12- Reviewing the periodic reports submitted regarding the progress of work at the entity and its financial position.
The Council may delegate some of its powers to its President, or to a representative, or to any member of the Council, or to any of the entity's staff as it sees fit.
Board meetings shall be held at Monshaat’s headquarters and shall be presided by its Chairman or his designee from among Board members. Board meetings may, if necessary, be held elsewhere in the Kingdom.
The Board shall convene periodically four times a year. The Chairman of the Board may call for a meeting if the need arises or if requested by at least three members.
A Board meeting shall be deemed valid only if attended by the majority of members, including the Chairman or his designee. Board decisions shall be passed by the majority vote of attending members. In case of a tie, the meeting chairman shall have the casting vote.
Board deliberations and decisions shall be entered into minutes signed by the chairman of the meeting and attending members.
A Board member may not abstain from voting nor vote by proxy. A dissenting member may request his objection and reasons therefor be entered into the meeting minutes.
A Board member shall not disclose any of Monshaat’s confidential information he becomes privy to by virtue of his membership.
The Board may invite experts and consultants to attend its meetings in a non-voting capacity.
The Board may form standing or ad hoc committees from among its members and others to carry out certain tasks. The formation decision of each committee shall designate its chairman and members and determine its powers and duties. A committee may seek the assistance of non-members in the performance of its duties.
Monshaat shall have a governor whose appointment and dismissal shall be pursuant to a Board decision. The appointment decision shall determine his remuneration and other financial benefits. The Governor shall be in charge of the management of Monshaat in accordance with this Statute and Board decisions. He shall assume the following powers and duties:
Supervising Monshaat’s activities in accordance with the regulations and approved plans and programs.
Proposing Monshaat’s general policies and the plans and programs necessary for their implementation, submitting the same to the Board for approval, and monitoring their implementation.
Proposing plans to support SMEs.
Preparing Monshaat’s draft annual budget and final accounts and submitting the same to the Board.
Representing Monshaat before the judiciary, government agencies, and other relevant entities within the Kingdom and abroad.
Proposing Monshaat’s regulations and approving relevant work procedures, subject to the regulations and the Board’s decisions.
Disbursing from the approved budget and conducting financial transactions in accordance with applicable laws and regulations and the powers granted to him by the Board.
Preparing progress reports relating to Monshaat’s plans and programs, and submitting the same to the Board.
Concluding contracts for carrying out Monshaat’s works and services in accordance with the laws and the powers vested in him.
Preparing the annual report on Monshaat’s activities which shall include challenges encountered and recommendations to overcome such challenges, and submitting it to the competent authorities after being approved by the Board.
Signing agreements, protocols, and contracts upon Board approval, subject to applicable statutory procedures.
Supervising Monshaat’s organization of regional and international conferences, forums, and events and its participation therein.
Issuing the decisions necessary for the implementation of this Statute and its regulations and approved rules and procedures, in accordance with the powers vested in him.
Appointing Monshaat’s employees in accordance with the regulations, and supervising the performance of their duties.
Approving training and scholarship plans and programs for Monshaat’s employees, and monitoring their implementation.
Assuming any other power assigned thereto by the Board or Monshaat’s regulations.
1. Monshaat’s financial resources shall be as follows:
a) Allocations in the State budget.
b) Fees for services rendered by Monshaat.
c) Gifts, aids, grants, bequests, and endowments accepted by the Board.
d) Returns on its investments.
e) Any other resource approved by the Board.
2. Monshaat’s funds shall be deposited in an account opened with the Saudi Central Bank. Monshaat may, with the approval of the Ministry of Finance, open accounts with any bank licensed to operate in the Kingdom. Disbursement from said funds shall be made in accordance with Monshaat’s approved budget.
Monshaat shall have an independent annual budget issued in accordance with the State budget issuance arrangements.
Monshaat’s fiscal year shall be the same as the State’s fiscal year. As an exception, Monshaat’s first fiscal year shall commence on the date this Statute enters into force and shall end on the date the State’s following fiscal year ends.