Saudi Arabia's economy: The contribution of small and medium enterprises to GDP jumps to 22.9%
In an achievement that reflects the success of economic diversification plans, the indicators issued within the annual report of the Kingdom’s Vision 2030 showed that the contribution of small and medium enterprises to the Kingdom of Saudi Arabia’s GDP has risen to 22.9% during 2024. This figure exceeds the interim targets, confirming the pivotal role that this sector has come to play as one of the main pillars of the national economy, and a major driver of sustainable growth and job creation.
General context: Vision 2030 as a catalyst for the private sector
This remarkable growth comes within the context of the comprehensive economic transformation led by the Kingdom’s Vision 2030, which has placed the empowerment of the private sector, specifically small and medium-sized enterprises (SMEs), at the heart of its strategic objectives. After decades of relying on oil as the primary source of income, the Kingdom has adopted policies aimed at building a diversified and sustainable economy. In this context, the General Authority for Small and Medium Enterprises (Monsha’at) was established in 2016 to serve as the government umbrella supporting entrepreneurs. Monsha’at has worked to develop a stimulating legislative and regulatory environment and provide comprehensive support packages that include financing, training, consulting, and facilitated market access.
The importance of the event and its expected impact
The significance of this achievement transcends mere numbers, carrying profound implications across various sectors. Locally, the growth of this sector contributes to addressing employment challenges by creating thousands of quality jobs for Saudi youth, while also fostering innovation and market competitiveness, and stimulating development in less developed regions. Regionally, these results solidify the Kingdom's position as a leading hub for entrepreneurship in the Middle East, attracting investment and talent. Internationally, strengthening the SME sector enhances the resilience of the Saudi economy to global fluctuations and bolsters its competitiveness on the international stage.
Detailed indicators that support growth
This achievement is supported by a range of detailed figures highlighting the integrated nature of the economic empowerment system. The franchise model, an effective pathway for knowledge transfer and business expansion, witnessed 13% growth in 2025, reaching 2,637 franchises, compared to 2,333 in 2024. Regarding financing, the total guaranteed financing provided through the Kafalah Program reached SAR 130.6 billion, enabling these establishments to access the necessary liquidity for expansion. Furthermore, the listing of more than 39 establishments on the financial market in recent years reflects the maturity of these companies and their ability to attract capital and diversify their funding sources, thus ensuring their long-term sustainability and growth.
