Saudi Arabia has unveiled the second edition of its Estrdad initiative, a comprehensive government fee-refund program valued at SAR 1.5 billion (approximately $400 million). The program is designed to help micro, small, and medium enterprises (MSMEs)—including early-stage startups—by refunding key government charges during their first three years of operation.
What the Initiative Covers
Estrdad allows eligible businesses to reclaim costs in ten categories, including:
- 80% of the expatriate labor levy
- Fees for commercial registration and municipality licensing
- Publication of contracts, Saudi Post, and Chamber of Commerce subscriptions
- Trademark and patent registration
- Economic activity license fees
Notably, the inclusion of patent registration reimbursement in this iteration emphasizes support for innovation among Saudi enterprises.
Eligibility and Timeline
To qualify, enterprises must meet the following criteria:
- Classified as micro, small, or medium enterprises (MSMEs)
- Be less than three years old as of 1 January 2024
- Operate with at least one registered employee
- Be fully or majority Saudi-owned, with at least 60% Saudi ownership
- Comply with Saudization requirements and hold a valid economic activity license
The registration window runs through the end of 2026, with fee refunds disbursed periodically, extending until the end of 2028.
Building on Past Success
This is the second edition of Estrdad, after the first was launched in 2018. The initial program supported more than 27,000 businesses, facilitated the creation of over 89,000 jobs, and achieved around 75% business sustainability among participants.
A Strategic Boost for Vision 2030
Administered by the General Authority for Small and Medium Enterprises (Monsha’at), Estrdad is part of broader policy efforts to reduce operational barriers for startups and SMEs, thereby stimulating entrepreneurship. The initiative aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and increase SME contributions from 20% to 35% of GDP by 2030.
By refunding key fees, the scheme enhances financial sustainability and competitive readiness for early-stage businesses, encouraging innovation, investment, and long-term growth.
