Monshaat says Tomoh-ELITE program supports SMEs eligible for listing in equity markets

Tomoh-ELITE program aims to support fast-growing enterprises eligible for listing in the financial markets, the General Authority for Small and Medium Enterprises (Monshaat) said in an exclusive interview with Argaam.

The program connects entities with a network of local and international advisors and investors, with the aim of promoting their growth and preparing them for financing or offering on the parallel market (Nomu).

On future plans, Monshaat confirmed that it is working to establish a small and medium enterprises (SMEs) bank, pointing out that it submitted the bank’s project study to the higher authorities after its completion.

The SMEs bank aims to enhance access to finance and enable the main financial authorities to fund SMEs sector as well as entrepreneurs.

Q: What is Monshaat’s Tomoh-ELITE program for companies eligible for listing?

A: It is a program that works to develop promising companies through 10 major factors, including training programs on the following lines: strategy, innovation and global growth, organizational models and governance, developing financial systems, financing options, business planning, measuring the enterprise status for offering, simulating the initial public offering (IPO), final review, and offering the project to investors.

Q: What do you think of the preference for SMEs and listed firms provided by the Ministry of Finance under the new procurement and competition system for government business and procurement?

A: The new system contributed to boosting the SMEs share in government procurement. It has a direct impact on the development of SMEs as it sets rules and procedures for favoring SMEs and listed firms, and giving them priority in competitions.

In addition, the new system exempts SMEs from bid bonds, instead suffices with a written pledge to be committed to competition.

The step reflects Monshaat’s keenness to support SMEs that aim to grow and compete in the local and global markets. It also helps enhance how SMEs benefit from the available investment opportunities, through cooperation with all concerned government entities.

Q: What are Monshaat’s future plans to support SMEs?

A: Monshaat works diligently to prepare, implement and support programs and projects to spread the culture and ideology of self-employment, the spirit of entrepreneurship, initiative and innovation, diversify sources of financial support for enterprises, in addition to setting policies and standards for financing projects that are classified as SMEs.

Monshaat is keen on providing administrative and technical support to enterprises and support them in developing their administrative, technical, financial, marketing, and human resources capabilities, among others.

Among the most prominent of the upcoming plans is the establishment of SMEs bank as the project study has been submitted to the higher authorities after its completion.

Monshaat’s aim from the bank is to enhance access to finance and enable the main financial institutions to provide funds for SMEs sector and entrepreneurs.

In addition, Monshaat is working on launching a financial incentive for SMEs eligible for listing on Nomu after completing Tomoh-ELITE program’s requirements and fulfilling the conditions for obtaining the incentive.

The financial incentive will contribute towards the cost of appointing a financial advisor or a percentage of it.

This comes within the initiative efforts to incentivize and encourage private companies to offer and list their shares on the stock market, which is one of the Financial Sector Development Program’s (FSDP) initiatives under the Vision 2030.