The Cabinet, chaired by the Deputy Custodian of the Two Holy Mosques, His Royal Highness Prince Mohammed bin Naif bin Abdulaziz Al Saud, took a number of important economic decisions. After reviewing the transaction submitted by the Ministry of Commerce and Investment, regarding activating the role of the private sector and increasing its contribution to GDP by stimulating investments related to venture capital and private ownership, and after considering the recommendation of the Standing Committee of the Council of Economic Affairs and Development No. (7-11/37/D) dated 1/5/1437H, it approved a number of arrangements including the following:
The Public Investment Fund and the Ministry of Commerce and Investment shall coordinate between them and take the necessary measures to establish a holding fund called the Fund of Funds with a capital of (four) billion Saudi riyals, whose purpose is to invest in venture capital and private equity funds on a commercial basis to support and stimulate investment opportunities for small and medium enterprises.
The Ministry of Commerce and Investment shall take the necessary measures to establish a professional association concerned with raising the level of professionalism and professionalism in the venture capital and private equity sector, and the Ministry shall set the organization and regulations for the association, its objectives and work mechanism to enable it to perform its tasks.
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The Ministry of Commerce and Investment - in conjunction with the relevant authorities - to propose the necessary regulations, procedures or arrangements to facilitate the activities of the venture capital and private equity sector and remove the legal and procedural obstacles facing it, and use whomever it deems necessary to support the work from
the Ministry of Commerce and Investment
Related and concerned bodies, and report on what requires taking statutory measures in this regard.
-The CMA should take appropriate steps to develop and expand investments in the venture capital and private equity sector, including studying the capital requirements for venture capital fund managers.
The General Authority for Investment (GAFI) to work on attracting international VC and PE funds to offer funds in the Kingdom according to the Capital Market Law and its regulations or direct investment.
The Council also decided at its session to approve a memorandum of understanding for cooperation in the field of cultural heritage, museums, urban heritage, crafts and handicrafts between the Saudi Commission for Tourism and National Heritage in the Kingdom of Saudi Arabia and the Ministry of Culture in the Republic of Peru.
