JobXDubai

In a significant boost to the Kingdom’s small, medium, and micro enterprises (SMEs), Saudi banks and financiers have granted SR275.576bn ($73bn) worth of facilities over the past six years, till the end of 2023.

This represents a remarkable 154% growth, or SR167.1bn ($45bn), compared to 2018, when the figure stood at SR108.519bn ($29bn). On an annual level, the facilities provided grew by 20.3%, at an estimated value of SR46.544bn ($12bn).

The Saudi Central Bank’s monthly statistical bulletin for March 2024 revealed that medium-size enterprises accounted for the largest share of the total facilities, at 57.5%, or SR158.411bn ($42bn). Small enterprises followed, at 33.5%, or SR92.275bn ($25bn), while micro enterprises received 9%, or SR24.890bn ($7bn).

The banking sector contributed the largest share, at 94%, or SR258.295bn ($69bn), while finance companies provided SR17.281bn ($5bn), accounting for 6% of the total facilities.

Quarterly data shows a 3% growth in total facilities by the end of the fourth quarter of 2023, an increase of about SR7bn ($2bn) over the SR268.574bn ($72bn) at the end of the third quarter of the same year.

The Small and Medium Enterprises General Authority classifies medium-size enterprises as having revenues of SR40m ($11m) to SR200m ($53m), and 50 to 249 employees. Small-size enterprises have revenues of SR3m ($800,000) to SR40m ($11m), and six to 49 employees, while micro establishments have revenues of up to SR3m ($800,000) or one to five employees.