Saudi Arabia can achieve its Vision 2030 goals for the industrial sector through concerted efforts to guide industrial small and medium enterprises (SMEs) through their journey from setting up their industrial supply chains to finding their way onto the global market, KPMG Professional Services said in a new report.
"Throughout their journey of establishing local industrial supply chains, SMEs may face various challenges, which can be exacerbated by global occurrences and shocks, such as the global Covid-19 pandemic," Kenan Nouwailati, Head of Procurement, Supply Chain and Local Content Advisory at KPMG in Saudi Arabia, said in a statement.
However, the Kingdom has been making changes to regulations to boost entrepreneurship, most recently in June 2022, with the new Companies Law that is meant to improve financing and business dynamics in all sectors of the economy.
Financial support coupled with advisory services backed by the recently announced National Industrial Strategy offers a tremendous opportunity for industrial SMEs and equips them to deal with the challenges they face in the industrial ecosystem, such as attracting investments, keeping up with digitalisation, navigating regulations, and securing the right talent, the report noted.
Although the ease of doing business in the Kingdom has improved significantly over the last few years, difficulties remain in navigating the regulatory framework for industrial SMEs and investors, KPMG said.
(Writing by D Madhura; Editing by Anoop Menon)