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Saudi Arabia’s micro, small and medium enterprises (MSMEs) have seen robust growth in financing amid efforts to boost the sector’s contribution to the economy.
The value of credit facilities provided to MSMEs reached around SAR 351.7 billion ($93.7 billion) during the last quarter of 2024, rising by 28% from a year earlier, according to the latest data from the Saudi Central Bank (SAMA).
Banks across the kingdom drove the expansion, with credit facilities extended to MSMEs reaching SAR 333.5 billion, up by nearly 30% year-on-year.
Credit facilities from finance companies stood at SAR 18.2 billion, up by 5.4% over the same period.
Micro enterprises logged the biggest increase in credit, with facilities surging by 69.5% to SAR 42.2 billion. Small enterprises recorded SAR 122.3 billion, up by 32.5%.
Medium-sized businesses secured a total of SAR 187.3 billion in credit facilities, marking an 18% growth over a year ago.
Saudi Arabia looks to stimulate the SME sector by increasing its contribution to the gross domestic product (GDP) from 20% to 35% in 2030.
(Writing by Cleofe Maceda; editing by Seban Scaria)
