Riyadh, Saudi Arabia – The number of SMEs in Saudi Arabia increased by 4.8 percent in the first quarter of 2023, reaching a total of 1.2 million, Saudi Arabia’s General Authority for Small and Medium Enterprises (Monsha’at) reported on Wednesday.
This growth was driven by the launch of 88,858 new SMEs during the same period.
Riyadh, the capital city of the kingdom, is playing a crucial role in fostering a business-friendly environment and is home to over 41 percent of the country’s SMEs. The International Monetary Fund (IMF) predicts that Saudi Arabia’s economy will grow by over 3.1 percent this year, propelled by the strong private sector growth supported by the thriving SME sector.
One of the significant contributors to the growth of SMEs in Saudi Arabia was the Biban 23 forum, a global SME and entrepreneurship event held in Riyadh in March. The forum attracted more than 145,000 attendees and facilitated agreements amounting to $13.8 billion.
The Monsha’at report highlights the positive impact of Biban 23 on the SME ecosystem and includes insights into the winner of the Entrepreneurship World Cup, the Riyadh-based construction startup called WhiteHelmet.
The report focuses on the activities of the SME Bank, which began operations in December 2022. The bank has been collaborating with subsidiaries such as the Saudi Venture Capital Company (SVC) and the Kafalah loan guarantee program to provide new financing opportunities to SMEs.
The report also showcases Monsha’at’s various services, including SME Support Centers and the Nawafth Mobile App, and highlights partnerships between Monsha’at Academy and Abdul Latif Jameel Finance, GoDaddy, and SEDCO Holding.
The overall aim of these initiatives and policies is to help SMEs contribute 35 percent to Saudi Arabia’s GDP by 2030.