The Council of Ministers on Monday approved setting up of SR4 billion holding fund to invest in venture capital and private ownership funds to boost investments in small and medium enterprises (SMEs). The decision was taken by the weekly session of the Cabinet on the basis of the recommendation of the Standing Committee of the Council of Economic and Development Affairs. Crown Prince Muhammad Bin Naif, deputy premier and minister of interior, chaired the session at Al-Salam Palace in Jeddah, the Saudi Press Agency reported. Adel Al-Turaifi, minister of culture and information, said in a statement to SPA that that the Cabinet took the decision after reviewing a report presented by the Ministry of Commerce and Investment with regard to activating the role of the private sector and enhancing its contribution to the gross domestic product (GDP) through encouraging investments pertaining to venture capital and private ownership. He said the Cabinet entrusted the Ministry of Commerce and Investment and the Public Investment Fund to coordinate each other in taking appropriate measures to establish a holding fund called "Al-Sanaeeq Fund" with a capital of SR4 billion with the objective of making investments in virtual capital and private ownership funds on commercial basis to support and encourage investment opportunities in the SME sector. The Council also tasked the ministry to establish a professional society aimed at upgrading the vocational and professional standard of the venture capital and private ownership sector. The ministry has to draw up the regulations for the society in addition to setting its goals and working mechanism so as to enable it to carry out its mission effectively. It is also the duty of the ministry, together with the concerned agencies, to propose necessary regulations and procedures to facilitate the functioning of the venture capital and private ownership sector and remove stumbling blocks in this respect. Al-Turaifi said the Cabinet also instructed the Capital Market Authority (CMA) to take appropriate measures to develop the venture capital and private ownership sector and expand its scope. The Saudi Arabian General Investment Authority has been directed to attract international venture capital and private ownership mutual funds into the Kingdom on the basis of either the CMA rules and regulations or the direct investment.
