SME Sector in Saudi Arabia Expands by 3.1%

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Growth for SMEs

Official data released by the Small and Medium Enterprises General Authority, Monsha’at, revealed that small and medium enterprises (SMEs) in Saudi Arabia reached a total of 1.3 million in the fourth quarter of 2023, marking a significant 3.1% increase from the previous quarter.

According to the report, Riyadh hosts the majority of these SMEs, with 570,000 establishments, representing 43.7% of the total SME landscape in the kingdom. Furthermore, the SME ecosystem in Riyadh is supporting over 3 million employees, with a noticeable surge in female workforce participation.

Monsha’at highlighted the pivotal role of the Kingdom’s Regional Headquarters Program in driving economic growth in Riyadh, underscoring its impact on job creation and sectoral diversification.

The quarterly SME Monitor report also spotlighted the growth of small businesses in Diriyah and the strategic masterplan developed by the Public Investment Fund, aimed at transforming the region into a global centre for culture, heritage, and tourism.

Jerry Inzerillo, Group CEO of Diriyah Gate Development Authority, commended Saudi Arabia’s visionary leadership for its transformative economic policies, emphasising the country’s commitment to smart initiatives and sustainable development.

Moreover, Monsha’at projected that the ongoing Diriyah Season, launched on Jan. 23, is anticipated to generate 178,000 local job opportunities and attract over a million visitors, further boosting economic activity in the region.

In addition, Saudi Arabia’s economic vibrancy has secured its bid to host the first World Expo in 2030, signalling the kingdom’s emergence as a global destination for investment and innovation.

The report also highlighted the burgeoning growth of the gaming and esports sector in Saudi Arabia, projecting the creation of over 30,000 jobs by 2030 and a significant contribution to the kingdom’s GDP.

With a rapidly expanding base of gaming enthusiasts, Saudi Arabia is poised to develop an indigenous game publishing ecosystem, tapping into a lucrative market segment and fostering economic growth and diversification.