The Saudi government has unveiled a robust, second edition of the Estrdad program, pledging substantial government fee refunds to startups during their formative first three years. Backed by a commitment of 1.5 billion SAR, the initiative is poised to strengthen the kingdom’s entrepreneurial ecosystem, enhance the sustainability and competitiveness of small and medium enterprises (SMEs), and firmly align with Saudi Vision 2030’s objective of building a diversified and thriving economy. This expansion underscores a sustained government focus on nurturing a fertile environment for small businesses, innovation, and job creation, reflecting the leadership’s long-standing dedication to empowering SMEs as engines of growth and economic resilience.
Estrdad Initiative: Second Edition Overview
The Estrdad initiative represents a strategic public-private alignment designed to reduce early-stage financial barriers for startups and aspiring SMEs. By offering refunds on government fees across a broad spectrum of business-related expenditures, the program aims to improve cash flow, reduce upfront capital needs, and enable nascent enterprises to allocate resources toward growth activities such as product development, market expansion, and hiring. The second edition broadens the scope of support and introduces new avenues for innovation, signaling a deliberate push to diversify the national economy and accelerate domestic value creation.
Key elements of the Estrdad initiative include:
- A government commitment of 1.5 billion Saudi riyals dedicated to refunds, aimed at supporting the first three years of a startup’s lifecycle.
- A focus on creating a thriving business environment by reducing recurring and initial costs that typically deter new ventures or slow their progression.
- Alignment with Vision 2030’s overarching goals to diversify the economy, foster competitiveness, and cultivate a robust SME sector capable of generating sustainable jobs and economic activity.
- A clear, phased approach designed to deliver ongoing financial stability for startups, enabling them to plan with greater certainty and prioritize scale-up strategies.
The program reflects a policy framework that places SMEs at the heart of economic development. It recognizes that small businesses can be pivotal in driving innovation, improving productivity, and expanding employment opportunities across regions. By mitigating the cost burdens associated with regulatory compliance and formalization, Estrdad aims to shorten the path from concept to commercialization, helping nascent ventures reach meaningful milestones more rapidly.
In practice, Estrdad’s design emphasizes a streamlined, digitally driven process. The initiative is intended to be fully digitised, providing an efficient, transparent, and accessible experience for applicants. The digital backbone is meant to expedite eligibility verification, streamline refunds, and minimize administrative friction that could otherwise stall the activation of startups in their early stages. This digitization aligns with Saudi Arabia’s broader commitments to enhance government services and enable a more frictionless business environment through technology-enabled governance.
The second edition’s broader policy emphasis also signals a coherent strategy to foster a diverse set of startups—ranging from technology and manufacturing to services and beyond—while maintaining safeguards that ensure the sustainability and integrity of the program. The overarching objective remains consistent: to provide tangible support to emerging enterprises and to reinforce a diversified economy that can withstand external shocks, create employment, and contribute to long-term competitiveness.
Eligibility Criteria and Refund Scope
Estrdad defines clear eligibility parameters to ensure that assistance is targeted toward startups with the most potential for growth, sustainability, and impact. The criteria are designed to be specific yet flexible enough to accommodate a wide range of business models and industries, with particular attention to localization and ownership structures aligned with national policy.
Eligibility criteria include:
- Enterprise classification: Applicants must be micro, small, or medium-sized enterprises (as defined by the relevant authorities) to qualify for refunds.
- Business age: Businesses must have been in operation for no longer than three years, reflecting the program’s emphasis on early-stage support.
- Start date anchor: The official start date of operations must be on or after January 1, 2024. The date of the first employee’s registration serves as the business start date, anchoring eligibility to a tangible employment milestone.
- Ownership and localization: Applicants must meet localization requirements established by the Ministry of Human Resources and Social Development (MHRSD), with ownership predominantly held by Saudi nationals or Saudi-owned SMEs—specifically at least 60 percent ownership by Saudi individuals or Saudi-owned SMEs.
- Exceptions: Certain activities are subject to exceptions outlined on the Estrdad program website. Applicants should review these exemptions carefully to determine whether their business falls within or outside of the eligible categories.
Refund scope and categories:
- A broad set of refunds covering ten key fee areas, with a notable emphasis on expatriate-related costs (an 80 percent refund rate for expatriate fees).
- Refunds for costs associated with publishing articles of association, commercial registrations, municipality licenses, subscriptions to Saudi Post and chambers of commerce, trademark registration, and licenses for economic activity.
- A new feature of the second edition is the addition of patent registration refunds, designed to promote innovation and support domestic invention and intellectual property development among national enterprises.
The combination of these refund categories aims to reduce both the initial and ongoing costs of formalizing and maintaining an SME’s operations, thereby easing the financial burden on founders and management teams in the critical early years. The emphasis on expatriate fees reflects the practical realities of early-stage staffing in many startups, while the inclusion of patent-related refunds signals a deliberate priority for innovation and knowledge-based growth.
Applicants must ensure compliance with all regulatory requirements throughout the process. The program provides a clear framework for what constitutes eligible expenditures and which refunds apply to specific fees. The eligibility framework also reinforces the importance of domestic ownership and localization, aligning with broader national priorities to maximize Saudi participation in the national economy.
Timelines, Registration Window, and Disbursement Phasing
Estrdad’s second edition is structured to deliver continuous support over an extended horizon, combining a defined launch timeline with ongoing opportunities for new entrants and existing participants. The program was designed to launch from the policy formation stage through a multi-year operational window that extends beyond 2026, with disbursements scheduled to begin as soon as qualified applicants are identified and to continue through the end of 2028.
Key timeline features include:
- Launch-to-2026 registration window: SMEs can register for the program starting from the official launch date and continuing through 2026. This extended window ensures that a broad set of startups can access the refunds as they formalize or expand their operations.
- Early disbursement upon qualification: Financial disbursements commence as soon as applicants qualify, enabling immediate relief of cash flow pressures associated with initial setup costs and ongoing compliance expenses.
- Extended support horizon through 2028: The program’s disbursement phase is designed to run through the end of 2028, providing a sustained source of financial support across the critical early growth period.
- Phased financial stability: The phased approach aims to deliver ongoing financial stability to startups, allowing them to scale their operations with a reduced fiscal burden. This stability is intended to empower founders to focus more on business development, product improvement, and market expansion rather than on regulatory fees.
- Duration of support: While the refunds cover a duration of the first three years, the phased disbursement and the extended window through 2028 are meant to reinforce the continuity of support and reduce the risk of abrupt funding gaps that could derail early-stage growth.
In addition to the established timeline, the Estrdad program’s digital design ensures a streamlined experience for applicants. The fully digitized system is intended to simplify eligibility verification, support faster refunds, and enhance transparency around processing times. The digital backbone is part of a broader Saudi strategy to modernize public services and facilitate a smoother interface between government services and the entrepreneurial community.
Refund Categories: Expatriate Fees, Registrations, and Intellectual Property Support
The Estrdad initiative covers refunds across ten major categories, with a notable emphasis on expatriate-related costs and the broad spectrum of regulatory and administrative expenses that startups typically incur in the early stages. The categories reflect a combination of immediate administrative costs and longer-term investments that contribute to a business’s formal and ongoing operation.
A detailed look at the refund areas:
- Expatriate fees: A substantial refund rate of 80 percent is allocated to expatriate-related fees. This component acknowledges the significant role that international staffing often plays in early-stage ventures and seeks to alleviate a major cash-flow concern for startups with diverse teams.
- Articles of association: Fees related to publishing and formalizing the company’s articles of association are eligible for refunds, supporting the legal scaffolding needed to establish and operate a business.
- Commercial registrations: Costs associated with obtaining and maintaining commercial registrations are covered to reduce compliance barriers and ensure smoother market entry.
- Municipality licenses: Local licensing fees essential for operating in municipal jurisdictions are included, supporting compliance with local regulations and enabling legitimate business activity.
- Subscriptions to Saudi Post and chambers of commerce: Ongoing memberships and service subscriptions that facilitate operations, logistics, and networking opportunities are refunded to reduce recurring costs and encourage engagement with essential service networks.
- Trademark registration: Intellectual property protection through trademark registration is supported, promoting brand protection and market differentiation for startups.
- Economic activity licenses: Licenses specific to the permitted scope of business activities receive refunds, ensuring that core revenue-generating activities can commence without disproportionate upfront costs.
- Patent registration refunds: A new feature in this edition, patent refunds promote innovation by reducing the cost of securing and protecting intellectual property. This aligns with a policy emphasis on building a knowledge-driven economy and supporting domestic invention.
- Other related regulatory and administrative expenses that fall within the defined ten-category framework are eligible in alignment with the program’s rules and guidelines.
The inclusion of patent registration refunds is particularly noteworthy. It signals a strategic pivot toward incentivizing innovation and protecting ideas that can translate into new products, services, or processes. By lowering the financial barriers to patent protection, the Estrdad program encourages startups and SMEs to invest in R&D, accelerate the commercialization of innovations, and position Saudi enterprises as global competitors in technology-rich sectors.
Applicants should note that the program’s website provides specific details on eligible activities and any exceptions. The exceptions clarify which categories may be partially eligible or excluded under certain business models or sectors. The online guidelines are designed to ensure clarity, fairness, and consistency in how refunds are calculated and disbursed.
Digital Transformation, Eligibility Verification, and Administrative Efficiency
A defining feature of the Estrdad second edition is its fully digitized operation. The digital approach is intended to deliver a smoother, faster, and more transparent experience for applicants, enhancing accessibility and reducing processing times. The digitization supports government service modernization and aligns with Saudi Arabia’s push to create a more technologically advanced, citizen-centric public sector.
Key digital aspects include:
- Online eligibility verification: Applicants can complete the screening process through an integrated online platform, which uses validated data to confirm eligibility against defined criteria such as business age, ownership structure, and regulatory compliance.
- Real-time refund processing: The digital system is designed to accelerate refunds once eligibility is confirmed, enabling startups to receive funds in a timely manner and apply them toward immediate business needs.
- Tracking and transparency: Entrepreneurs can monitor the status of their applications, understand the timelines for disbursement, and access clear explanations for any decisions or required documentation.
- Data integrity and security: The digital system emphasizes secure data handling, compliance with privacy regulations, and protection of sensitive business information.
- Accessibility and inclusivity: The online process is designed to be user-friendly, with clear guidance, support resources, and step-by-step assistance to help startups navigate the eligibility criteria, required documents, and refund calculations.
The move toward a digitized Estrdad process reflects a broader national strategy to streamline government services, reduce bureaucratic friction, and promote an entrepreneurial culture that can thrive in an increasingly digital economy. By making it easier for startups to access refunds and by providing timely financial relief, the government aims to create a reliable and predictable policy environment that supports long-term business planning.
In addition to Estrdad’s digital backbone, the program’s administration is structured to ensure consistent oversight and compliance. The Ministry responsible for micro, small, and medium enterprise development collaborates with related ministries to harmonize rules, align localization requirements, and monitor the impact of refunds on startup performance. This coordination underscores a holistic approach to SME policy, spanning regulatory, financial, and innovation dimensions.
National Day Seasonal Discount Licenses: A Complementary Economic Push
In parallel to Estrdad, the Ministry of Commerce has announced the opening of applications for the 95th National Day seasonal discount licenses. This initiative targets retail establishments and e-commerce businesses seeking to participate in a major national shopping event while ensuring compliance with discount regulations and maintaining fair competition across markets.
Key features of the National Day seasonal discount licenses include:
- Fully electronic application system: Merchants can apply for, obtain, and display licenses through an online process, simplifying access and facilitating rapid participation in the seasonal event.
- Discount period: The licenses cover a dedicated discount window from September 16 to September 30, designed to stimulate consumer activity during the holiday season while safeguarding consumer trust.
- QR verification: Buyers can verify the authenticity of discounts by scanning a unified QR code printed on each license. The QR code provides transparent information about the discount type, percentage, duration, and participating stores, promoting transparency and trust in promotional offers.
- Compliance and enforcement: The Ministry has confirmed ongoing inspection campaigns across all regions during the discount period to monitor compliance with discount regulations in both physical stores and online platforms, ensuring fair play and consumer protection.
This complementary measure aims to boost retail activity by creating an attractive discount framework during a peak shopping window, while also reinforcing the government’s commitment to transparent pricing and robust regulatory oversight. By combining digital licensing with a verifiable discount system, the program seeks to cultivate consumer confidence, encourage legitimate promotions, and reduce the risk of misrepresentation or non-compliance in the discount landscape.
Strategic intent behind the National Day licenses includes:
- Stimulating demand and consumer engagement during a high-visibility shopping period.
- Providing a regulated channel for retailers to offer promotions without undermining market fairness or eroding trust.
- Demonstrating a coordinated economic policy that links SME support with consumer protection and market integrity.
The National Day initiative thereby complements Estrdad’s focus on reducing startup costs and supporting enterprise growth, creating a broader policy environment that encourages both supply-side entrepreneurship and demand-side consumer activity. Together, these measures reinforce Saudi Arabia’s commitment to sustainable economic growth, innovation, and a vibrant, inclusive marketplace where entrepreneurs and consumers thrive.
Economic Context, Growth, and Confidence: A Dual-Approach to Stimulus
The simultaneous deployment of the Estrdad second edition and the National Day seasonal discount licenses represents a dual approach to stimulating economic growth while safeguarding consumer confidence and market integrity. The Estrdad program directly targets early-stage financial barriers for SMEs, providing refunds that reduce the costs of formalization, compliance, and essential business operations. This directly addresses cash-flow constraints, a common challenge for startups, and supports a more resilient startup ecosystem capable of weathering early-stage volatility.
On the consumer side, the National Day discount licenses are designed to invigorate retail activity by enabling retailers to offer promotions within a regulated and transparent framework. The approach helps balance supply-side incentives for sellers with demand-side consumer protection, ensuring that promotions are legitimate, clearly disclosed, and traceable. The use of QR codes to verify discounts adds a layer of transparency that can boost shopper confidence during a period of heightened shopping activity.
Collectively, these measures are aligned with Saudi Arabia’s broader economic policy framework. They support diversification by encouraging the growth of SMEs across various sectors, including technology, manufacturing, services, and trade. They enable a more dynamic private sector that can contribute to job creation, innovation, and increased productivity. By fostering a robust SME ecosystem and promoting fair, transparent consumer promotions, the government aims to sustain growth, reduce unemployment, and strengthen the resilience of the Saudi economy against global economic fluctuations.
A spokesman for Monsha’at emphasized the initiative’s pragmatic focus: the Estrdad program is designed to provide tangible support to emerging enterprises, reflecting the leadership’s vision of a diversified economy under Saudi Vision 2030. The Ministry of Commerce echoed this sentiment, stating that the National Day promotions are intended to facilitate a seamless and trustworthy shopping experience during celebrations while maintaining robust regulatory oversight to ensure transparency and compliance. Together, these measures illustrate a coordinated policy approach that can strengthen economic diversification, innovation, and a marketplace where entrepreneurs and consumers can thrive side by side.
The dual policy approach also signals the government’s intention to create a more predictable and supportive operating environment for SMEs. By addressing both the supply-side barriers (through cost refunds and regulatory relief) and the demand-side dynamics (through well-regulated promotional activity), Saudi Arabia is positioning its SME sector and consumer market for sustained growth and resilience in the years ahead.
Implementation Safeguards, Compliance, and Ownership Dynamics
A key dimension of Estrdad’s design is the emphasis on compliance, transparency, and responsible ownership. The program’s criteria are structured to ensure that refunds are directed toward enterprises that demonstrate a commitment to localization, lawful operation, and sustainable growth. A few practical considerations stand out:
- Localization and ownership: The requirement that ownership be predominantly Saudi (at least 60 percent) reflects a policy priority to maximize Saudi participation in business ownership and economic activity. This aligns with broader national objectives to empower Saudi citizens and domestic SMEs to contribute meaningfully to the national economy.
- Exceptions and activity coverage: While many activities are eligible for refunds, certain exceptions apply to specific sectors. Applicants should consult the program’s official guidelines to understand which activities qualify and which might be excluded or have particular conditions.
- First employee milestone: The use of the first employee registration as the business start date highlights the importance of job creation as a tangible metric of startup activity. This criterion ties the program’s benefits to concrete employment outcomes and reinforces a link between entrepreneurship and labor market development.
- Digital verification and oversight: The fully digitized process supports real-time eligibility checks and refund processing, while also enabling auditability and stronger regulatory oversight. This combination is designed to deter misuse and ensure refunds reach legitimate startups.
Additionally, the compliance framework includes ongoing inspection efforts by the Ministry of Commerce during the National Day discount period, ensuring that discount practices are fair, transparent, and consistent with policy objectives. The emphasis on verification, monitoring, and regulatory enforcement underlines a comprehensive governance approach designed to sustain trust in both the Estrdad refunds and the National Day promotions.
Official Voices: Reaffirming Vision and Assurance
The Estrdad initiative has been framed by official statements that connect its practical benefits to broader national objectives. A spokesperson from Monsha’at emphasized that the Estrdad program is crafted to deliver tangible support to emerging enterprises, reflecting the leadership’s commitment to a diversified economy under Vision 2030. This framing highlights the government’s intent to create a resilient, knowledge-driven entrepreneurial landscape, where startups can flourish with reduced financial friction and stronger support mechanisms.
Likewise, the Ministry of Commerce underscored its dual objective of promoting consumer trust and facilitating a smooth shopping experience during National Day celebrations. The ministry highlighted the importance of transparency and robust regulatory oversight to maintain a fair marketplace, particularly as promotions become more prominent during peak shopping periods. These statements signal a coordinated, cross-ministerial approach to economic growth that seeks to balance business incentives with consumer protections.
Together, the official rhetoric reinforces a broader national narrative: Saudi Arabia is actively pursuing a well-rounded economic diversification strategy that empowers SMEs, accelerates innovation, and strengthens confidence among consumers and businesses alike. By aligning policy instruments such as refunds, localization requirements, digital government services, and transparent promotional practices, the government aims to create a sustainable and inclusive economy where entrepreneurs and customers thrive in equal measure.
Practical Takeaways for Startups and Businesses
For entrepreneurs considering Estrdad, the second edition presents a compelling opportunity to reduce the cost of entering and scaling a business within Saudi Arabia. The refunds across multiple categories can substantially lower upfront expenses and ongoing regulatory costs, freeing capital for product development, market research, and hiring. The addition of patent registration refunds is a particularly meaningful enhancement for startups pursuing innovation, enabling stronger protection for intellectual property and potential competitive differentiation.
For retailers and online merchants, the National Day seasonal discount licenses offer a structured, compliant pathway to participate in a high-visibility promotional period. The digital application process, coupled with a universal QR code for discount verification, supports a transparent consumer experience and reduces the risk of misrepresentation. The accompanying regulatory oversight emphasizes fair competition and consumer protection, contributing to a trustworthy shopping environment during a peak retail window.
Within both programs, the localization and Saudization considerations remain central. The ownership requirement and regulatory compliance expectations are designed to channel benefits to Saudi-owned enterprises and to maximize domestic participation in the economy. Applicants should carefully assess their eligibility against the criteria, keeping in mind the three-year operation window, the start-date anchor, and the requirement that the business model aligns with national localization policies.
If you are a prospective applicant or a current participant seeking to understand Estrdad’s second edition, consider the following practical steps:
- Review eligibility criteria in detail, paying particular attention to the ownership structure, operation start dates, and any exceptions listed for specific activities.
- Prepare documentation that demonstrates three years of operation or less, Saudi ownership levels, and localization compliance as required by MHRSD guidelines.
- Plan for staffing milestones, especially the timing of the first employee’s registration, which marks the business start date for eligibility purposes.
- Identify the ten refund categories most relevant to your business, focusing on high-impact areas such as expatriate fees, registrations, and IP protection costs.
- Leverage the fully digitized platform to verify eligibility quickly, monitor processing timelines, and track refund disbursement.
For retailers engaging in the National Day discount program, ensure readiness by reviewing the electronic licensing process, preparing discount strategies that comply with regulations, and integrating the QR verification mechanism into customer-facing materials. This alignment will help preserve consumer trust and maximize the promotional impact of the seasonal event.
Conclusion
Saudi Arabia’s second edition of the Estrdad initiative, with its substantial government fee refunds and an expanded scope that includes patent registration refunds, represents a bold commitment to strengthening the SME ecosystem and fostering innovation. By reducing the cost of formalization, licensing, and ongoing compliance, Estrdad aims to accelerate startup growth, enhance competitiveness, and contribute to job creation in line with Vision 2030. The digital, streamlined approach further augments accessibility and efficiency, ensuring startups can navigate the program with clarity and speed.
In parallel, the National Day seasonal discount licenses introduced by the Ministry of Commerce reinforce a complementary policy objective: invigorating retail activity during a major national shopping period while maintaining transparent, compliant practices. The synchronized emphasis on SME support and consumer protection demonstrates Saudi Arabia’s multifaceted strategy to drive sustainable growth, diversify the economy, and cultivate a vibrant market where entrepreneurship and consumer confidence flourish.
Together, these measures illustrate a comprehensive, integrated approach to economic development—one that values innovation, localization, and responsible governance as the pillars of a resilient, forward-looking Saudi economy. As startups leverage Estrdad’s refunds to reach new milestones and retailers participate in a transparent National Day promotional framework, the alignment with Vision 2030 remains evident: a prosperous, diversified, and dynamic national economy rooted in opportunity for both entrepreneurs and consumers alike.
