Saudi Arabia Launches US$400 Million Estrdad Program To Refund Fees For SMEs

Saudi Arabia has launched the second edition of the Estrdad initiative, a government fee refund program valued at SR1.5 billion (US$400 million) to support micro, small, and medium enterprises (MSMEs). 

The program enables eligible startups to reclaim 10 categories of government fees during their first three years of operation, thereby reducing costs and strengthening business sustainability. Refundable fees cover 80 percent of the expatriate levy, along with charges for commercial registration, municipality licenses, contract publication, Saudi Post and Chambers of Commerce subscriptions, trademark and patent registration, and economic activity licenses. 

The inclusion of patent registration reimbursement in this edition reflects efforts to encourage innovation among Saudi enterprises. Registration will remain open until the end of 2026, with disbursements continuing through 2028. 

Eligibility criteria require companies to be fully or majority Saudi-owned, meet Saudization targets, and be less than three years old as of January 1, 2024. They must also employ at least one registered worker. 

Estrdad was first introduced in 2018 and benefited more than 27,000 businesses, contributing to the creation of over 89,000 jobs, with a sustainability rate of 75 percent.