HRH Prince Faisal Bin Salman Launches One Billion Riyals Endowment to Support SMEs in Saudi Arabia

22 September, 2014: HRH Prince Faisal Bin Salman, Governor of Madinah, launched Namaa Al Munawara, a non-profit organisation that serves as the implementation arm of Al Munawara Endowment, known as Waqf Al Munawara, developed to support and to empower the SME sector in Madinah region, in an event that took place at Taibah University.

Commenting on the launch, HRH Prince Faisal bin Salman said: “Al Madinah aims at strengthening socio-economic sustainability, given that it falls in line with Saudi Arabia’s developmental renaissance, under the leadership of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz and HRH Crown Prince Salman bin Abdulaziz. Waqf Al Munawara was established to reinforce this vision of development, with Namaa Al Munawara being its implementation arm. Namaa will support and empower the SME sector in Madinah as SMEs’ are the life blood of all economies and a vital component and a key vehicle for improving economic conditions and expanding job creation. They account for approximately 90 per cent of the total local companies registered with the Ministry of Commerce and Industry.”

“Given that implementation is usually considered one of the most challenging stages, we will ensure that the citizens of Madinah will feel Namaa Al Munawara’s positive impact in the first quarter of next year, through our continuous follow-up and dedication to the organisation’s activities.” He added.

In order to translate its strategy into actions, Namaa Al Munawara has come up with a number of key initiatives, including:

• One Stop Shop: Namaa Al Munawara will support entrepreneurs by acting as a "One Stop Shop" for all SME needs, where it will enhance, empower and enrich the SME sector in the Madinah province. This initiative is tasked to simplify official procedures and help entrepreneurs establish their businesses from start to finish through creating synergies with various government entities and private institutions. In its initial phase, the centre will incorporate services by Al Madinah Regional Municipality, Madinah Civil Defense Department, Department of Zakat and Income Tax in Madinah, and the General Organization for Social Insurance in Al Madinah.

• Female Creativity Labs: Spread over 2200 square meters, the modern-Islamic architectural labs comprises integrated workplaces dedicated to the women of Al Madinah, aiming at nurturing women’s creativity and employment as this is ultimately a crucial element in fostering an equitable social and economic development. This initiative also includes the ‘Design Academy’, with the purpose of raising the standards of craft-making products of Madinah to international levels.

• Al Munawara Oases: These retail channels are considered a vital and crucial part of the ‘Madinah Made’ initiative. They will give entrepreneurs the chance to market and display their products through effective promotional channels in strategic historical locations in Madinah. The new retail channels will feature attractive designs that reflect the character of the urban and Islamic city of Madinah combined with modern international architectural standards.

• Al Munawara Industrial City: In partnership with the Saudi Industrial Property Authority, Namaa Al Munawara will allocate 100 medium-sized factories, which will be operational over the course of the next four years, 28 of which will be ready within the next 12 months. These factories will aid in creating job opportunities for the youth with the aim of achieving socio-economical sustainability which will ultimately be an effective way to broaden their capacity and skill base.

In addition, Namaa Al Munawara’s headquarters will be spread over 20,750 m2 and will support entrepreneurs from start to finish. It will provide designated work areas, sale points, workshops, lecture halls, interactive showrooms for ‘Madinah Made’ products, offices for Namaa’s success partners and the Saudi Arabian General Investment Authority (SAGIA), and an art gallery to exhibit Madinah’s heritage and modern history.

Several government agencies have contributed to the success of Namaa Al Munawara, where Saudi Credits and Savings Bank provided approximately SR 700 million as a loan portfolio for the project. Al Madinah Municipality will also deliver 100 sites for the new retail channels within the next 12 months, with the aim of increasing the number of these sites to 500 by the year 2020.

Namaa Al Munawara has also signed an MOU with Saudi Aramco to build development programmes for SMEs in addition to studying the possibility of creating a venture capital fund. Saudi Industrial Property Authority will allocate 100 medium-sized factories which will be operational over the course of the next four years, 28 of which will be delivered during the first phase of the project.

From its end, Human Resources Development Fund will help in creating several job opportunities, while Taibah University is committed to providing some funding for Namaa Al Munawara’s various activities.

Bin Laden Group will provide SR 50 million within the next 24 months, while ACWA Power will provide SR 15 million during the next 36 months. To nurture women’s creativity and employment, the Supreme Commission for Tourism and Antiquities, in partnership with Qutof, will provide SR 1.5 million.

Ahmed Al Mahayri, CEO of Namaa Al Munawara stated: “Serving Al Madinah is an honorable act of worship portraying the joy of giving. This comprehensive agenda of projects places Al Madinah at the forefront of Arab leadership, given that the company’s headquarters extend over an area exceeding 20,000 square meters, and is one of the Middle East’s largest SME accelerators.”

Thanking all partners and collaborative parties for their dedication, Al Mahayri added: “God has bestowed upon Al Madina young, effective leadership, with a vision that believes in the importance of implementation, and love and commitment to citizens. This constituted the very foundation of these initiatives, and which are determined to achieve all the anticipated success. I would also like to take this opportunity to thank the Custodian of the Two Holy Mosques and HRH the Crown Prince for their ongoing support of the youth across Al Madinah and Kingdom-wide.”