Minister OH Youngju Holds Meeting with Companies Entering Saudi Arabian Market
- Division
- Spokesperson's Office
- Date
- 2024.11.08
- Writer
- MSS
- Headline
FOR IMMEDIATE RELEASE
Nov. 7, 2024
Minister OH Youngju Holds Meeting with Companies Entering Saudi Arabian Market
SEJONG – The Ministry of SMEs and Startups (MSS) held a meeting with tenants of the Riyadh Global Business Center (GBC) in Riyadh, Saudi Arabia, on November 5, 2024.
The meeting highlighted the completion of entrepreneur licenses for seven companies residing at the Riyadh GBC. In addition, various support measures for localization have been provided, such as legal and accounting consulting, matching with local agents, and product testing and improvement. With the entrepreneur license, the cost of general licenses required to operate a business in Saudi Arabia (including manufacturing, distribution, services, and transportation) has been reduced to about 12%, and companies are also exempted from the minimum capital requirements.
For example, Dilly Dilly, a distribution company undergoing the review process for its entrepreneur license, will be able to operate in Saudi Arabia without the KRW 10 billion minimum capital requirement once the license is issued. Thanks to this support, GL RAFA, one of the tenant companies, has completed preparations for the construction of a pharmaceutical plant scheduled to begin in early 2025, while Dtonic is actively pursuing a partnership with the Saudi startup Retailo.
Minister OH Youngju stated, “The recent surge in investments across various industries in Saudi Arabia, coupled with the country’s push for economic diversification, presents significant growth opportunities for Korean SMEs and startups entering the Middle East.” She added, “We are committed to supporting Korean SMEs and startups as they become the key players in the Middle East’s economic transformation.”
The meeting, which began with an introduction to the Riyadh GBC, included discussions with tenant companies about support for overseas corporate funding and the enhancement of the GBC’s role in facilitating SME entry into the Middle East. Afterward, Minister OH toured the business spaces within the GBC to encourage companies entering Saudi Arabia.
Kim Hyemin, CEO of Dilly Dilly, who attended the meeting, said, “We are currently undergoing the review process for the entrepreneur license. The consulting services provided by dedicated staff at the Saudi Ministry of Investment within the GBC have been invaluable, especially given our initial lack of relevant information and capacity.” She added, “We hope that exchanges and cooperation between Korea and Saudi Arabia will continue to grow.”
About Riyadh GBC
The Riyadh GBC is a government collaboration-type center established in October 2023 through continuous communication and collaboration between the governments of Korea and Saudi Arabia. The Saudi Ministry of Investment prioritizes tenant companies at the Riyadh GBC in obtaining their Entrepreneur Licenses and has assigned dedicated personnel to the GBC to establish an ongoing communication channel, providing various support to the tenant companies.
Nov. 7, 2024
Minister OH Youngju Holds Meeting with Companies Entering Saudi Arabian Market
SEJONG – The Ministry of SMEs and Startups (MSS) held a meeting with tenants of the Riyadh Global Business Center (GBC) in Riyadh, Saudi Arabia, on November 5, 2024.
The meeting highlighted the completion of entrepreneur licenses for seven companies residing at the Riyadh GBC. In addition, various support measures for localization have been provided, such as legal and accounting consulting, matching with local agents, and product testing and improvement. With the entrepreneur license, the cost of general licenses required to operate a business in Saudi Arabia (including manufacturing, distribution, services, and transportation) has been reduced to about 12%, and companies are also exempted from the minimum capital requirements.
For example, Dilly Dilly, a distribution company undergoing the review process for its entrepreneur license, will be able to operate in Saudi Arabia without the KRW 10 billion minimum capital requirement once the license is issued. Thanks to this support, GL RAFA, one of the tenant companies, has completed preparations for the construction of a pharmaceutical plant scheduled to begin in early 2025, while Dtonic is actively pursuing a partnership with the Saudi startup Retailo.
Minister OH Youngju stated, “The recent surge in investments across various industries in Saudi Arabia, coupled with the country’s push for economic diversification, presents significant growth opportunities for Korean SMEs and startups entering the Middle East.” She added, “We are committed to supporting Korean SMEs and startups as they become the key players in the Middle East’s economic transformation.”
The meeting, which began with an introduction to the Riyadh GBC, included discussions with tenant companies about support for overseas corporate funding and the enhancement of the GBC’s role in facilitating SME entry into the Middle East. Afterward, Minister OH toured the business spaces within the GBC to encourage companies entering Saudi Arabia.
Kim Hyemin, CEO of Dilly Dilly, who attended the meeting, said, “We are currently undergoing the review process for the entrepreneur license. The consulting services provided by dedicated staff at the Saudi Ministry of Investment within the GBC have been invaluable, especially given our initial lack of relevant information and capacity.” She added, “We hope that exchanges and cooperation between Korea and Saudi Arabia will continue to grow.”
About Riyadh GBC
The Riyadh GBC is a government collaboration-type center established in October 2023 through continuous communication and collaboration between the governments of Korea and Saudi Arabia. The Saudi Ministry of Investment prioritizes tenant companies at the Riyadh GBC in obtaining their Entrepreneur Licenses and has assigned dedicated personnel to the GBC to establish an ongoing communication channel, providing various support to the tenant companies.