Monsha’at publishes SME Monitor report detailing development in the SME sector Saudi Arabia had over 750,000 SMEs by the close of Q1 2022, a near 15% year-on-year increase Monsha’at’s finance tools facilitated billions in SAR funding to Saudi SMEs through Q1 2022, including SAR 64.6 billion through the KAFALAH program RIYADH, [XXX] JUNE 2022: The number of SMEs operating in Saudi Arabia increased to 752,560 in Q1 2022 from 650,550 in the same period last year, representing a 14.6% year-on-year increase. Funding for Saudi SMEs via Monsha’at facilitated services saw the Kafalah program guarantee SAR 64.6 billion in secured loans to entrepreneurs, while the Tamweel platform enabled SAR 12.3 billion in loans, the Saudi Venture Capital Company invested SAR 1.4 billion, and the Indirect Lending Initiative provide low-cost loans of SAR 2.5 billion to companies. Monsha’at, Saudi Arabia’s General Authority for Small and Medium Enterprises, released the numbers as part of its “SME Monitor” quarterly report, an ecosystem study detailing the explosive growth of entrepreneurialism in Saudi Arabia. “SMEs need streamlined bureaucracy, lower fees, and the ability to compete in the market,” said Eng. Saleh Ibrahim Alrasheed, Governor of Monsha’at. “We are ensuring that SMEs get the support they need, and that growth is transformed into sustainable business models.” The SME ecosystem is said to be benefitting from the Saudi capital’s rising global status. “Riyadh is fast becoming an entrepreneurial hub with a global reach,” said Lateefa Alwaalan, Managing Director of Endeavor Saudi in the report. “Entrepreneurs see Riyadh as the gateway to the largest consumer market in the GCC.” Monsha’at reports that over 239,000 SMEs are located in Riyadh, accounting for 31.8% of all SMEs in the country and employing over 1.8 million people. This makes Riyadh one of the most dynamic cities in the region for small businesses. In March 2022 Riyadh hosted the Global Entrepreneurship Congress (GEC), a global event that brings together leading voices in entrepreneurship, including innovators, regulators and financers. Under the theme of “Regenerate, Rethink, Reboot” GEC brought together 9,300 attendees from 180 countries to witness how the Kingdom’s SME and startup ecosystem has evolved in the past five years. Over the course of the four-day event, SAR 51.8 billion worth of deals were signed, in addition to over 10 rounds of financing for Saudi startups. The Culture, Entertainment and Sports sector was squarely in focus for innovators and investors at GEC, establishing itself as a sector of choice for new entrepreneurs in the Kingdom. Monsha’at’s latest quarterly report reveals a robust and expanding SME ecosystem where new ideas are matched with increasing sources of funding and institutional support. While traditional sectors such as retail and construction have greatly benefitted from this systemic expansion, newer markets such as fintech, entertainment, tourism, sport, and VC have also surged. For further information, click here to read the full report -ENDS- About Monsha’at Established in 2016, the General Authority for Small and Medium Enterprises’ (Monsha’at) chief objective is to organize, support, develop, and sponsor the SME sector in accordance with best global practices. In doing so, it will vastly boost private sector productivity and help increase SMEs’ contribution to GDP from 20% to 35% by 2030. Monsha’at deploys a wide range of initiatives that directly speak to the challenges that SMEs face in the market, with assistance being further broken down by company size and type. In addition to providing firms with critical administrative, technical, and financial support, Monsha’at also assists SMEs with marketing and human resources.