Saudi Arabia’s Small and Medium Enterprises General Authority (Monsha’at) has unveiled the second edition of the Estrdad initiative, pledging a government refund total of 1.5 billion Saudi riyals to support startups through their crucial first three years of operation. The programme is designed to foster a vibrant entrepreneurial ecosystem, strengthen the sustainability and competitiveness of micro-, small-, and medium-sized enterprises (SMEs), and align closely with Vision 2030’s broader aim of building a diverse and prosperous national economy. The leadership’s commitment to nurturing SMEs, recognized as vital engines of economic growth and job creation, underpins this renewed push.
From the launch date through 2026, SMEs can register for Estrdad, with refunds disbursed as soon as eligibility is confirmed and continuing through the end of 2028. The phased design aims to deliver ongoing financial stability to new ventures, allowing them to concentrate on scaling their operations and reaching profitability. The initiative covers refunds across ten key categories, including a substantial 80% refund of expatriate fees, costs associated with publishing articles of association, commercial registrations, municipality licenses, subscriptions to Saudi Post and chambers of commerce, trademark registration, and licenses for various economic activities. A notable expansion in this edition is the introduction of patent registration refunds, a clear signal of national emphasis on innovation and inventive capability within domestic enterprises. The Estrdad programme is described as fully digitised, offering a streamlined experience for verifying eligibility and processing refunds efficiently, a reflection of Saudi Arabia’s broader digital transformation agenda and its commitment to modernising government services to better support entrepreneurship. These reforms come alongside other parallel government initiatives aimed at bolstering the business environment and consumer confidence during major commerce periods.
Estrdad Initiative: Overview, scope, and mechanics
Estrdad’s renewed edition represents a comprehensive framework designed to lower the upfront costs that typically burden early-stage enterprises. The programme’s reach is structured to ease financial pressures at the outset of a company’s journey, providing a reliable cushion that mitigates the risk of early-stage cash flow difficulties. This relief is anticipated to enable startups to invest more aggressively in product development, market entry activities, workforce expansion, and operational improvements that contribute to long-term viability.
The ten refund categories form the backbone of Estrdad’s fiscal relief strategy. Among these, expatriate-related costs constitute a major portion of eligible refunds, with a targeted 80% recovery rate designed to reconcile the higher international labour costs often associated with initial hires and skill development. Other categories include essential administrative and compliance expenditures such as the costs of publishing articles of association, registering a business entity commercially, securing municipality licenses, maintaining subscriptions to state-supported logistics and civil society platforms, and protecting intellectual property through trademark registrations. In addition, refunds extend to licenses covering various economic activities, thereby easing the compliance burden across multiple sectors. The new patent registration refunds are particularly notable as they incentivise domestic invention and the commercialisation of innovations, strengthening the country’s capacity for technology-driven growth.
The program’s digital nature means applicants can expect a transparent, efficient, and streamlined process. Eligibility verification and refund processing are designed to be user-friendly, reducing bureaucratic friction and enabling quicker access to funds. This digital emphasis aligns with Saudi Arabia’s broader commitment to e-government services and to providing entrepreneurs with clear, faster avenues to support resources.
A key feature of Estrdad is its phased operational timeline. Registration opens upon launch and remains available through 2026, with refunds beginning to flow as soon as businesses qualify. The disbursement window extends through the end of 2028, giving startups a defined but flexible period to leverage the support as they navigate early-stage growth. This phased design helps ensure ongoing financial support and provides startups with predictable timelines for relief, which can be factored into strategic planning and cash flow management.
Eligibility for Estrdad is defined by several specific criteria designed to target genuinely nascent enterprises that stand to gain the most from public financial relief. Applicants must be classified as micro, small, or medium-sized enterprises, in operation for no more than three years, and must have begun business activities on or after January 1, 2024. Importantly, the date that marks a company’s official start is the date on which the first employee is registered. In addition, participants must meet localisation requirements established by the Ministry of Human Resources and Social Development, and ownership must be predominantly Saudi, with at least 60% owned by Saudi individuals or by Saudi-owned SMEs. The initiative does include exceptions for certain activities, which are set out in detail on the Estrdad official portal. This ensures the programme can be tailored to accommodate sector-specific realities while preserving its core intention to support domestic, Saudi-owned enterprises.
A hallmark of Estrdad’s design is its fully digitised platform, intended to standardise and accelerate eligibility checks and refunds. By removing much of the manual processing that previously slowed government assistance, Monsha’at aims to deliver a more predictable and timely refund experience for startups. This approach supports the government’s broader digital transformation goals and demonstrates a sustained commitment to improving the efficiency and effectiveness of public services for entrepreneurs.
Alignment with Vision 2030 and strategic significance
The Estrdad programme is positioned within Saudi Arabia’s overarching strategy to diversify the economy, reduce reliance on hydrocarbon revenues, and cultivate a knowledge- and innovation-driven business landscape. By providing substantial refunds for essential startup costs, Estrdad directly mitigates the financial barriers that often deter new ventures from entering the market or scaling to sustainable levels. The initiative’s design acknowledges that a robust SME sector is a key driver of job creation, regional development, and inclusive economic growth, all of which are core tenets of Vision 2030.
Moreover, Estrdad signals a long-term governmental strategy to expand the country’s base of value-added activities. By bolstering sectors such as technology, manufacturing, and professional services through targeted refunds—and by encouraging patent registration—Saudi Arabia positions itself to accelerate domestic innovation and indigenous competitiveness. The initiative aligns with Vision 2030’s objective of fostering a diverse economy with wide opportunities across young populations and women entrepreneurs, while reinforcing the corporate regulatory environment to support sustainable growth and global competitiveness.
The emphasis on localisation and Saudi ownership within Estrdad further dovetails with Vision 2030’s emphasis on national ownership of entrepreneurial activity and the development of local capabilities. By prioritising Saudi-majority ownership and linking eligibility to domestic human resources standards, Monsha’at anchors the programme within the national framework for workforce development and entrepreneurship. The digitised nature of the scheme complements the broader push to modernise government services, enhance transparency, and build a more efficient regulatory environment for both startups and established SMEs.
From a macroeconomic perspective, the Estrdad refunds can contribute to improved business survival rates during the critical early years of operation, increasing the likelihood of scale-up, productivity gains, and ultimately job creation. The project is designed to yield compounding benefits: successful startups become anchor employers, suppliers, and demand generators for other sectors, which in turn stimulates regional economies and fosters a more resilient private sector. The combination of direct financial relief, simplification of regulatory procedures, and a national emphasis on innovation positions the Estrdad initiative as a cornerstone of economic diversification and sustainable growth under Vision 2030.
The 10 refund categories and the patent refund
Estrdad’s policy framework covers ten distinct refund categories, each designed to alleviate significant startup costs and to stimulate business activity across multiple domains. The most impactful element is the 80% refund of expatriate fees, which addresses a major portion of initial payroll costs for foreign workers who are often integral to early-stage knowledge transfer, technical expertise, and leadership. The high refund rate in this category is intended to reduce the barrier posed by international talent recruitment and to support the growth trajectory of startups that rely on skilled professionals in their nascent years.
In addition to expatriate fees, the programme refunds costs associated with publishing articles of association, granting commercial registrations, obtaining municipality licenses, and securing subscriptions to official bodies such as Saudi Post and chambers of commerce. The reimbursement for trademark registration is another crucial element, as strong branding and intellectual property protection are essential for market entry, competitive positioning, and investor confidence. Refunds for various economic activity licenses provide startups with greater flexibility to diversify operations and explore opportunities across sectors without being hindered by licensing costs.
A notable expansion in Estrdad’s second edition is the introduction of patent registration refunds. This addition signals a strategic pivot toward fostering domestic innovation and strengthening the country’s capacity for invention and technological advancement. By easing patent-related expenses, the initiative incentivises startups to invest in research and development, protect new technologies, and bring novel solutions to market more rapidly. The patent refund is a deliberate policy choice to drive long-term competitiveness in a knowledge-intensive economy and to encourage a culture of invention that aligns with Vision 2030’s ambitions for a high-tech, globally competitive economy.
The inclusion of these refunds within a single, integrated programme reduces the friction for early-stage companies when navigating the public cost landscape. For startups, the bundling of diverse categories under one umbrella provides a clearer, more predictable path to obtain financial relief. It also allows for more cohesive budgeting and planning, enabling founders to align their hiring, licensing, branding, and intellectual property strategies with a structured refund schedule. This holistic approach helps to solidify the confidence of entrepreneurs, investors, and business service providers in the Saudi startup ecosystem.
Eligibility criteria and eligibility verification
To participate in Estrdad, applicants must meet a precise set of criteria designed to identify enterprises that stand to benefit most from public support. The programme targets micro-, small-, and medium-sized enterprises that have been in operation for no more than three years. The starting point for eligibility is the official commencement date of business activities, which is determined by the date on which the first employee is registered. Operations beginning on or after January 1, 2024 satisfy the “new entrant” condition.
In addition, companies must comply with localisation requirements established by the Ministry of Human Resources and Social Development. This ensures that the enterprises reflect the country’s national workforce development priorities. Ownership must be predominantly Saudi, with at least 60% of equity held by Saudi individuals or by Saudi-based SME entities. The policy framework contains a narrow set of exceptions, applicable to specific activities as detailed on the Estrdad platform. These conditions create a structured, merit-based pathway for startups to qualify for refunds while preserving policy objectives around localisation and national ownership.
The application and eligibility verification process is designed to be fully digital, minimising manual intervention and expediting refunds. Applicants can submit the required documentation and verify their status online, enabling faster confirmation of eligibility and smoother processing. The digitised system supports real-time status updates and transparent tracking of refunds, allowing business owners to monitor progress and plan cash flows accordingly. The technical architecture underlying this platform is designed to handle large volumes of applications and to maintain data security and privacy, ensuring that sensitive business information is protected throughout the process.
The emphasis on a clear, criteria-driven approach helps maintain the integrity of the programme and reduces the risk of misallocation. By maintaining strict thresholds for business age, ownership structure, and localisation, Estrdad remains focused on its objective: to assist new, Saudi-owned SMEs with substantial early-stage cost relief. The existence of exceptions for particular activities also recognises that some sectors may have unique regulatory or operational considerations requiring tailored treatment.
Digital transformation and streamlined service delivery
Estrdad is described as fully digitised, reflecting Saudi Arabia’s ongoing push toward comprehensive e-government services. The digital platform streamlines eligibility verification, document submission, and refund processing, reducing the administrative burden on entrepreneurs and enabling more predictable funding timelines. A key advantage of this approach is the potential for faster disbursement of funds, which can significantly alter the cash flow dynamics of early-stage businesses that often operate with limited financial buffers.
The digitisation also supports enhanced transparency. Applicants can access a clear, auditable trail of their application status and refund progress, which fosters trust and reduces uncertainty about whether funds will be disbursed and when. This transparency is critical for startups that rely on accurate budgeting and timely capital inflows to maintain operations, hire essential staff, and pursue growth strategies.
In addition to the Estrdad platform, the government’s broader digitisation efforts in the business support domain aim to improve the ease of doing business in the Kingdom. The digital infrastructure is designed to integrate with other regulatory and support initiatives, enabling a more cohesive ecosystem in which startups can access a suite of services, including licensing assistance, registrations, and incentives, with reduced friction and a more seamless user experience.
National Day seasonal discount licenses: regime and enforcement
Complementing the Estrdad strategy, the Ministry of Commerce has opened applications for the 95th National Day seasonal discount licenses. This programme targets retail outlets and e-commerce businesses, providing a structured, fully electronic system for applying, obtaining, and displaying licenses ahead of the seasonal discount period. The discount window runs from September 16 to September 30, creating a concentrated timeframe for promotional activity that can boost consumer engagement and retailer sales without diluting the annual discount quotas.
To ensure authenticity and clarity, the National Day licenses incorporate a unified QR code printed on each license. Shoppers can scan the code to verify the discount type, percentage, duration, and participating stores, promoting transparency and consumer confidence in promotional offers. This QR-based verification mechanism serves as a straightforward tool for consumers to understand and trust the discounts offered during the season.
Regulatory oversight remains active to maintain a fair marketplace. The Ministry of Commerce has confirmed ongoing inspection campaigns across all regions of the Kingdom during the National Day period, aimed at monitoring compliance with discount regulations on both physical stores and digital platforms. The enforcement measures underscore the government’s commitment to upholding fair trading practices, preventing fraudulent activity, and safeguarding consumer interests while enabling a dynamic and competitive retail environment during the seasonal peak.
Driving growth and confidence: a dual approach for a resilient economy
The collaboration between Estrdad and the National Day discount programme demonstrates Saudi Arabia’s dual-pronged strategy to drive economic growth by simultaneously reinforcing the supply side (supporting SMEs) and boosting demand (stimulating consumer purchases during peak shopping periods). Estrdad directly lowers financial barriers that startups face in their early years, enabling them to hire, operate, and innovate with reduced subsidy risk. The National Day seasonal discounts, meanwhile, encourage vibrant retail activity, strengthening consumer confidence and stimulating both supply and demand dynamics in the broader economy.
Together, these measures illustrate a coherent policy approach designed to foster a more diversified, innovative, and consumer-friendly marketplace. The Estrdad initiative supports entrepreneurship and job creation by alleviating cost pressures, while the National Day programme provides a controlled stimulus for seasonal shopping, encouraging merchants to invest in promotions, marketing, and inventory that can boost sales and competitive positioning. This synergy aligns with the government’s broader objective of building a modern, competitive economy with a strong private sector capable of sustaining growth across cycles.
A Monsha’at spokesperson emphasised that Estrdad is intended to provide tangible support to emerging enterprises, reflecting the leadership’s vision for a diversified economy under Vision 2030. The ministry of commerce, in turn, highlighted the goal of facilitating a seamless shopping experience during National Day celebrations while ensuring transparency and compliance through robust regulatory oversight. These statements, while representing the official stance of the agencies, collectively convey a commitment to economic diversification, innovation, and a marketplace where entrepreneurs and consumers thrive side by side.
Economic implications: growth, resilience, and investor confidence
The Estrdad initiative’s scale and scope carry significant implications for the Saudi economy’s trajectory. By providing substantial refunds across essential cost categories, the programme reduces startup fragility and can contribute to a higher survival rate among new ventures. When combined with the National Day discount framework, the government is pursuing a holistic policy approach that strengthens both the supply side (startups and SMEs) and the demand side (consumer interest and purchasing activity).
The strategic emphasis on patent registrations reveals a forward-looking dimension: a country that nurtures invention and protects intellectual property can accelerate domestic innovation, attracting investment in high-value sectors and fostering knowledge-based job creation. The packaging of financial incentives with regulatory clarity, digital accessibility, and performance monitoring helps build an investment-friendly climate. This is particularly salient for local entrepreneurs and international players evaluating Saudi Arabia’s market potential and regulatory environment.
Moreover, the localisation and ownership criteria embedded in Estrdad are expected to encourage the growth of Saudi-led enterprises that can compete domestically and internationally. As SMEs mature, they may expand their contribution to gross domestic product (GDP), export potential, and technology transfer within the Kingdom. The alignment of Estrdad with Vision 2030’s objectives for diversification, innovation, and sustainable development positions the programme as a significant pillar of the country’s long-term economic strategy.
Official voices and leadership perspectives
A spokesperson from Monsha’at underscored that Estrdad is designed to deliver tangible support to burgeoning enterprises, aligning with the leadership’s vision for a diversified economy under Vision 2030. The Ministry of Commerce echoed these sentiments, stating that the national strategy aims to facilitate a smooth shopping experience during the National Day celebrations while ensuring transparency and regulatory compliance through robust oversight. These perspectives reiterate a shared commitment across government agencies to strengthen economic diversification, promote innovation, and create a marketplace where entrepreneurs and consumers can operate with confidence and clarity.
The combined messaging from Monsha’at and the Ministry of Commerce reinforces the sense that a coordinated, policy-driven approach underpins modernisation efforts in Saudi Arabia. The Estrdad refunds and the National Day licensing regime are not isolated measures; they are components of a broader system designed to facilitate entrepreneurship, enable consumer engagement, and foster a resilient, globally competitive economy.
Practical considerations for entrepreneurs and policymakers
For entrepreneurs, Estrdad offers a structured path to mitigate early-stage costs, especially in critical areas such as expatriate staffing, licensing, and intellectual property protection. Startups should proceed with careful planning to ensure eligibility, align ownership structures with localisation requirements, and document the dates that determine their official start, including the date of the first employee. Given the programme’s digital nature, applicants should prepare digital copies of all necessary documents, anticipate potential timelines for eligibility verification, and integrate refund planning into their financial models.
For policymakers and government administrators, Estrdad represents a model of targeted, results-oriented support with measurable outcomes. The programme’s digital architecture should be continuously evaluated for efficiency, security, and user experience. Governance mechanisms must oversee disbursement timing, ensure compliance with local ownership requirements, and manage the balance between rapid refunds and prudent fiscal stewardship. The National Day licensing regime also requires ongoing oversight to preserve fair competition, protect consumers, and guarantee that promotions reflect genuine value without undermining market integrity.
Ongoing communication with SMEs will be important to assess impact, gather feedback, and refine eligibility criteria or refund categories as needed. A data-driven approach can help quantify the programme’s effects on startup survival, employment creation, innovation activity (including patent filings), and overall SME contribution to GDP. Policymakers should consider periodic reviews to ensure Estrdad remains aligned with evolving economic conditions, technological advances, and international best practices for SME support and consumer protection.
Conclusion
In launching the second edition of Estrdad, Monsha’at has reaffirmed Saudi Arabia’s steadfast commitment to a robust, diversified, and innovation-driven economy. The 1.5 billion SAR fund dedicated to government fee refunds across ten key categories—most notably the substantial 80% expatriate fee refunds and the newly added patent registration refunds—illustrates a comprehensive strategy to reduce the upfront costs associated with founding and growing SMEs. By targeting micro-, small-, and medium-sized enterprises that began operations within the last three years, Estrdad focuses on truly early-stage companies that stand to gain the most from reliable financial relief during their formative years. The policy’s design—anchored in localisation requirements, a minimum 60% Saudi ownership threshold, and a fully digital processing platform—seeks to ensure that the benefits flow to Saudi-owned ventures while supporting national workforce development and local capability expansion.
The programme’s alignment with Vision 2030 reinforces its significance as a structural element of the Kingdom’s broader economic transformation. By incentivising domestic innovation, speeding up administrative procedures, and fostering an environment where startups can thrive, Estrdad aims to generate sustainable job creation, attract investment, and catalyse productivity improvements across sectors. The inclusion of patent refunds signals a strong national emphasis on invention and technology-driven growth, reinforcing the Kingdom’s ambition to become a regional hub for research, development, and scalable enterprise.
In parallel, the National Day seasonal discount licenses underscore the government’s dual focus on supply and demand. By facilitating a streamlined licensing process for retailers and e-commerce operators, and by embedding consumer-facing verification through a unified QR code, authorities aim to safeguard consumer trust while maximizing the promotional impact of major shopping periods. Ongoing regulatory oversight for discount practices demonstrates a commitment to maintaining fair competition and protecting both businesses and shoppers in a dynamic retail landscape.
Taken together, Estrdad and the National Day discount framework embody a cohesive, forward-looking strategy to bolster SME growth, drive innovation, and strengthen consumer confidence in Saudi Arabia’s economy. The message from government voices is clear: a digitally empowered, investment-friendly environment—coupled with targeted financial relief and transparent consumer protections—can nurture a resilient, globally competitive market where entrepreneurs, workers, and consumers prosper in tandem. As Saudi Arabia continues to implement Vision 2030, these initiatives will be closely watched for their effectiveness in improving startup survival rates, accelerating innovation, and expanding the Kingdom’s role in the global economy, with expectations for robust feedback loops that further refine and expand these critical economic instruments.
