Arab News, Thursday, Jun 01, 2023 | Thul-Qidah 12, 1444
Number of SMEs in Saudi Arabia rises 4.8% in Q1, exceeds 1.2m
Saudi Arabia:
Saudi Arabia is witnessing increased entrepreneurial activity as the total
number of small and medium enterprises exceeded 1.2 million in the first quarter
of 2023.
According to a report released by the Small and
Medium Enterprises General Authority, also known as Monsha’at, this figure
reflects a 4.8 percent surge compared to the final quarter of 2022.
The report further revealed that 88,858 new
businesses were launched across the Kingdom in the first quarter of 2023.
“Saudi Arabia’s robust SME ecosystem passes new
milestones every quarter,” Mohammed Al-Belwe, Monsha’at vice governor for
communications, told Arab News.
“More than 88,000 new SMEs were launched in Q1
alone, bringing consumers a new array of goods and services and spurring growth
across key sectors such as tourism, e-commerce, retail, food and beverage, and
fintech,” Al-Belwe said.
“Behind these numbers is an exciting new
generation of entrepreneurs who are striking out on their own, and as the
Kingdom’s non-oil economy surges, the growth of SMEs will continue to kindle
unprecedented private sector growth,” he added.
Riyadh was home to 41.4 percent, followed by
Makkah at 18.1 percent, the Eastern Province at 11.1 percent and the other
cities accounted for 28.6 percent of the total SMEs in the Kingdom.
SME financing reached its highest level in the
first quarter of 2023, touching SR1.35 billion ($359 million).
The e-commerce and retail sectors emerged as the
most active sectors in terms of financing during the first quarter of 2023, the
report revealed.
It also highlighted the initiatives of the Small
and Medium Enterprises Bank, which provided six financing products, including
credit cards for enterprises and e-commerce financing.
The products also include financing working
capital, microfinance, financing with a revolving credit line, and term
financing.
Also noteworthy were the achievements of the Biban
2023 Forum, an event held in Riyadh in March and attended by an estimated
145,000 visitors from all over the world.
The event generated over $13.8 billion in
agreements and announcements for SMEs in the Kingdom.
Under the Vision 2030 goals, the SME sector aims
to contribute 35 percent of the gross domestic product by 2030.
Moreover, SMEs are set to play a significant role
in achieving the Kingdom’s objectives of lowering the unemployment rate from
11.6 percent to 7 percent and increasing women’s participation in the workforce
from 22 percent to 30 percent.