RIYADH: The number of small and medium enterprises (SMEs) in Saudi Arabia has reached 1.27 million by the end of the third quarter, driven by the Kingdom’s efforts to diversify its economy. This represents a 3.5 percent increase compared to the previous quarter, according to a report released by the Small and Medium Enterprises General Authority, also known as Monsha’at. Over 40,000 new businesses were launched during this period, with 43.3 percent of SMEs located in Riyadh.
The report highlights the significant progress in new business creation in Al-Qassim province, particularly in the mining and agriculture sectors. Al-Qassim is now home to nearly 60,000 SMEs and 105 active mining licenses. The region’s mining industry is the only source of bauxite in the Middle East, producing 4 million tons annually. Additionally, the province’s farmers produce 1.22 million tons of various agricultural products each year, earning it the nickname “the breadbasket of the Kingdom,” according to Monsha’at.
The private sector has played a crucial role in driving Saudi Arabia’s economy during the third quarter. Monsha’at reported an 18.8 percent year-on-year increase in private sector investments in SMEs, reaching SR262.7 billion ($70 billion). The report highlights the Kingdom’s robust non-oil growth as a result of a maturing ecosystem driven by ambitious diversification targets.
The National Industrial Development and Logistics Program has also facilitated the entry of more SMEs into the industrial and manufacturing sectors. In August 2023 alone, the Ministry of Industry and Mineral Sources issued 136 new industrial licenses, with over 11,000 factories now operational in the Kingdom.
To further support the SME ecosystem, Monsha’at organized Entrepreneurship Week earlier this month at its enterprise support centers in Riyadh, Jeddah, Madinah, and Alkhobar. The event showcased key initiatives and programs aimed at expanding startups in the market, as reported by the Saudi Press Agency.