The Ministry of SMEs and Startups (MSS, Minister OH Youngju) and the Embassy of the Republic of Korea in the Kingdom of Saudi Arabia (Chargé d'Affaires MOON Byung-jun) announced that they will begin recruiting participating companies for the “Middle East Market Entry Support Program for SMEs and Startups” (hereinafter referred to as the support program) starting Monday, July 7, through cooperation with the Saudi government.

Saudi Arabia has recently emerged as a high-growth, high-potential market through aggressive reform and opening-up policies. However, due to strict government regulations and significant cultural and religious differences, it has remained a challenging market for Korean SMEs and startups to enter.

* While Saudi Arabia boasts the largest GDP in the Middle East at USD 1.1 trillion, exports to Saudi Arabia by Korean SMEs totaled only USD 1 billion, just 0.9% of total SME exports (USD 111 billion) as of 2024.

MSS and the Korean Embassy in Saudi Arabia recognized that successful entry of Korean SMEs and startups into the Saudi market requires active cooperation with the local government, along with the selection of companies that align with actual market demand. Accordingly, they have planned and launched a support program in which the Saudi government directly selects the companies to enter the market.

Since April, the Korean Embassy in Saudi Arabia has conducted over 20 visits and meetings with nine Saudi government agencies, during which it explained the strengths of Korean SMEs, startups, and the broader venture ecosystem, as well as the details and necessity of the support program, ultimately securing their participation.

MSS also actively supported the initiative by collaborating with related organizations such as the Global Business Center (GBC) under the Korea SMEs and Startups Agency, the Korea Venture Business Association, and the Korea Federation of SMEs, while allocating budget through overseas expansion support programs.

As a result, the Saudi Ministry of Investment, together with other government ministries, agencies, and private venture capital firms, agreed to participate in the support program and notified that they would visit Korea to directly select the SMEs and startups for entry into the Saudi market. This marked the official launch of the program.

The support program will recruit companies in four sectors: AI, bio & health, tourism & entertainment, and smart city & construction. A total of 27 companies will be selected. Eligibility requirements specify that only startups founded within the past 10 years may apply for the AI sector, while SMEs of any age may apply for the other three sectors.

MSS and the Korean Embassy in Saudi Arabia plan to complete applications and submissions by July 24, conduct a document review by the end of July, and hold in-person evaluations in August with participation from Saudi experts to select the final participating companies. The selected companies will visit Saudi Arabia at the end of September to pursue market entry, secure business contracts, and attract investment. During the visit, they will engage in activities such as meetings and interviews with local government agencies, investment promotion briefings, and networking events.

Saudi government ministries and agencies are currently showing strong interest and high expectations for cooperation with Korean SMEs and startups. In particular, HUMAIN, the Saudi agency overseeing AI, has expressed a strong willingness to collaborate, indicating plans to provide up to USD 2 million per company through project contracts or equity investments*, demonstrating an active and committed stance toward partnering with Korean startups.

* However, project contracts or equity investments may not be made if no suitable companies are identified.

MOON Byung-jun, Chargé d'Affaires at the Korean Embassy in Saudi Arabia, stated, “Although there were many challenges along the way, I am very pleased that, after extensive discussions with the Saudi government, a cooperative program to support SMEs and startups is finally being launched.” He added, “I hope this initiative will serve as a turning point, expanding Korean business presence in Saudi Arabia, previously led mainly by large corporations in sectors like construction and defense, into cutting-edge industries such as AI, led by SMEs and startups.”

LEE Soon-bae, Director General for Global Growth Policy, stated, “Saudi Arabia is a market with size, purchasing power, and growth potential. It is a market that our SMEs and startups must enter to achieve globalization and diversify export markets.” He added, “MSS will form a ‘K-One Team’ with key SME-related institutions, including the Korea Federation of SMEs, the Korea SMEs and Startups Agency, and the Korea Venture Business Association, as well as the Korean Embassy in Saudi Arabia and local support organizations, to actively support SMEs and startups in becoming the driving force behind a second Middle East boom.”

MSS and the Korean Embassy in Saudi Arabia plan to hold a preliminary briefing session to enhance participating companies’ understanding of the support program and the Saudi market, as well as to promote the initiative.

* Date and Location: 1st Session: Tuesday, July 8, 2025, 14:00–15:30, MARU180 (B1 Floor), Yeoksam-dong, Seoul     2nd Session: Thursday, July 10, 2025, 14:00–15:30, KTX Conference Room (Uam Hall, 5th Floor), Daejeon Station
** Key Topics: Background and direction of the support program, overview of the Saudi Arabian economy and major policies, introduction of participating Saudi institutions, key elements of Saudi Vision 2030

Details of the “Middle East Market Entry Support Program for SMEs and Startups” can be found on the K-Startup portal (http://www.k-startup.go.kr) and the MSS website (http://www.mss.go.kr). Applications will be accepted online via the SME Overseas Expo Portal (http://www.sme.go.kr) from Monday, July 7 to Thursday, July 24.