You are currently viewing MSMEs from Saudi Arabia Scaled 16% Growth in 1st Quarter Credit Offerings
Citation: Image used for information purpose only. Picture Credit: https://www.arabnews.com

MSMEs from Saudi Arabia Scaled 16% Growth in 1st Quarter Credit Offerings

According to current data, the yearly rise in credit facilities for micro, small, and medium-sized businesses in Saudi Arabia was 16 percent in the first three months of 2024. Data from the Kingdom’s central bank, SAMA, showed that the total amount of borrowing lines allotted to this industry increased to SR293.43 billion ($78.25 billion) in the first quarter of 2023 from SR252.02 billion.

SAMA data indicates that 94 percent of these credit facilities were provided by Saudi banks, with the remaining 6 percent coming from financial businesses. Small businesses showed the most significant yearly growth, with a 32 percent increase to reach SR103.5 billion, while medium-sized businesses obtained the majority of the sector’s total granted facilities, at 55 percent, totalling SR160.6 billion.

Over this time, the amount of credit granted to micro enterprises—which account for 10% of all MSME financing—rose by 30%, totalling SR29.4 billion. Micro enterprises are defined as having fewer than five full-time employees and revenues up to SR3 million. Conversely, small businesses have revenues between SR3 million and SR40 million and employ up to 49 people full-time.

Conversely, medium-sized businesses employ between 50 and 249 people and generate revenues between SR40 million and SR200 million.
To diversify its economy away from oil and create a competitive funding environment, Saudi Arabia is making significant investments in its SMEs.

Changes have essentially streamlined commerce speculation and startup forms, boosting this sector’s share of GDP from 21 percent in 2013 with a Vision 2030 objective of coming to 35 percent.

The government is encouraging monetary educate to apportion 20 percent of their credit portfolios to this division, illustrating solid and progressing back for these undertakings.

Right now, progresses to MSMEs account for 8.6 percent of add up to credit from Saudi banks in what is an yearly rise of 8.3 percent. Furthermore, they speak to 20 percent of progresses from back companies, a slight diminish from 22 percent.