Even when COVID-19 disrupted global economies, SMEs in Saudi Arabia remained steadfast in their growth under the visionary leadership of King Salman and Crown Prince Mohammed bin Salman.
When the world started rebounding from the fallout of the pandemic, the support offered by the government to SMEs in Saudi Arabia was instrumental in helping them get back on their feet.
Saudi Arabia’s Small and Medium Enterprises General Authority, also known as Monsha’at, is fueling the growth of the SME sector in the Kingdom.
The state-run authority offers entrepreneurial platforms such as business incubators, business accelerators, and co-working spaces for SMEs to evolve and thrive in the market. The authority also facilitates government-fee refund, direct and indirect lending programs for SMEs and fast-growing unicorns.
Through these initiatives, Monsha’at aims to successfully achieve the targets outlined in Vision 2030 which include lowering the unemployment rate from 11.6 percent to 7 percent, increasing women’s participation in the workforce from 22 percent to 30 percent, and expanding SME contribution to 35 percent of gross domestic product by the end of this decade.
Regulatory reforms over the first half of 2022 have played a crucial role in increasing the number of female entrepreneurs in the country, with most of them leading firms in the food, wholesale and retail, health and professional sectors and supporting service industries.
Despite growing at a massive pace, SMEs in Saudi Arabia will have to transform and become more technologically savvy in their operations to go global and compete internationally.
As Saudi Arabia continues its journey to achieve the goals outlined in Vision 2030, SMEs in the nation are expected to emerge as the driving factor which will change the face of the Kingdom in the coming years.