Monsha’at, Korea’s KOSME to Foster Innovation, Sustainable Growth – OANANews

Report on the Memorandum of Understanding between Saudi Arabia’s Monsha’at and South Korea’s KOSME

Executive Summary

On November 7, 2025, a Memorandum of Understanding (MoU) was formalized between the Small and Medium Enterprises General Authority (Monsha’at) of the Kingdom of Saudi Arabia and the Korea SMEs and Startups Agency (KOSME) of the Republic of Korea. The signing took place at the Biban Forum 2025 in Riyadh. This agreement establishes a strategic framework for bilateral cooperation focused on advancing the Small and Medium-sized Enterprise (SME) sector, with a significant emphasis on achieving the United Nations Sustainable Development Goals (SDGs).

Parties to the Agreement

• Monsha’at (Small and Medium Enterprises General Authority, Saudi Arabia): Represented by Saud Alsabhan, Vice Governor for Entrepreneurship.
• KOSME (Korea SMEs and Startups Agency, Republic of Korea): A government agency supporting Korean SMEs from financing to global expansion, represented by Ilho Kim, Vice President of Global Development.

Strategic Objectives and Alignment with Sustainable Development Goals (SDGs)

The MoU is structured to achieve strategic objectives that directly support the 2030 Agenda for Sustainable Development. The core aims include strengthening cooperation and exchanging expertise to foster a resilient and innovative SME ecosystem in both nations.

1. Promoting Decent Work and Economic Growth (SDG 8): The partnership is designed to develop effective policies and programs that support SMEs. By enhancing the SME sector, the initiative will stimulate sustainable economic growth, create productive employment and decent work, and encourage entrepreneurship.
2. Fostering Industry, Innovation, and Infrastructure (SDG 9): A primary objective is to enhance SME competitiveness by stimulating innovation and promoting technological advancement. This focus on boosting productivity and embracing new technologies contributes directly to building resilient infrastructure and fostering inclusive and sustainable industrialization.
3. Strengthening Partnerships for the Goals (SDG 17): This MoU is a clear manifestation of a global partnership for sustainable development. The collaboration between Saudi and Korean government agencies facilitates the exchange of knowledge, expertise, and technology, which is essential for achieving sustainable growth targets in both countries and contributing to global goals.

Conclusion and Forward Outlook

The agreement between Monsha’at and KOSME represents a significant commitment to international cooperation for SME development. By pooling resources and expertise, the partnership is positioned to drive sustainable growth and innovation within the SME sectors of both nations. This collaboration serves as a model for achieving economic objectives that are fully aligned with the global framework of the Sustainable Development Goals, particularly those related to economic growth, innovation, and global partnerships.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth

   The article directly connects to SDG 8 by focusing on the development and support of Small and Medium Enterprises (SMEs). The MoU’s aim to “boost productivity and achieve sustainable growth” is a core component of this goal. Supporting SMEs is crucial for creating economic growth and fostering entrepreneurship.

2. SDG 9: Industry, Innovation and Infrastructure

   This goal is addressed through the MoU’s emphasis on innovation and technology. The text explicitly states that the agreement aims to “stimulate innovation, and promote technological advancement to boost productivity.” This aligns with SDG 9’s objective of building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

3. SDG 17: Partnerships for the Goals

   The entire article is about the formation of a partnership to achieve common goals. The Memorandum of Understanding (MoU) between Saudi Arabia’s Monsha’at and South Korea’s KOSME is a clear example of a bilateral partnership. It aims to “strengthen cooperation and the exchange of expertise” to achieve sustainable development in the SME sectors of both nations, which is the essence of SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

  The article mentions that the MoU aims to “stimulate innovation, and promote technological advancement to boost productivity,” which directly corresponds to the objectives of this target.

• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.

  The MoU’s central purpose is to “develop policies and programs that support SMEs” and “enhance their competitiveness,” which is the primary focus of Target 8.3.

• Target 9.3: Increase the access of small-scale industrial and other enterprises… to financial services… and their integration into value chains and markets.

  The article notes that KOSME provides “policy fund loans” and its Riyadh center works to “facilitate the successful entry of Korean companies into the Saudi market.” This reflects the goal of increasing SME access to finance and new markets.

• Target 17.6: Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing.

  The agreement between Saudi Arabia and South Korea to “strengthen cooperation and the exchange of expertise” on policies that “stimulate innovation, and promote technological advancement” is a direct implementation of this target for international cooperation on technology and knowledge sharing.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article, being an announcement of an agreement, does not provide quantitative data. However, it implies several qualitative and quantitative indicators that could be used to measure progress:

• The signed Memorandum of Understanding (MoU) itself: This document is a direct indicator of a formal cooperation agreement between the two countries, relevant to Target 17.6.
• Number of new policies and programs developed: The success of the MoU could be measured by the number of concrete policies and support programs created for SMEs as a result of the collaboration. This would be an indicator for Target 8.3.
• Number of SMEs entering new markets: Progress towards Target 9.3 could be measured by tracking the number of Korean SMEs that successfully enter the Saudi market and vice versa, facilitated by this partnership.
• Growth in SME productivity: An increase in the productivity levels of SMEs in both countries following the implementation of joint programs would be a key indicator for Target 8.2.

SDGs, Targets, and Indicators Summary

Source: oananews.org