Arab News, Mon, Nov 27, 2023 | Jumada Al-Uola 13, 1445
Saudi Arabia’s SMEs grow 3.5% in Q3, hitting 1.27m
Saudi Arabia:
The number of small and medium enterprises in Saudi Arabia reached 1.27 million
by the end of the third quarter, propelled by the Kingdom’s economic
diversification efforts.
According to the report released by the Small and
Medium Enterprises General Authority, also known as Monsha’at, this figure
represents a 3.5 percent rise compared to the second quarter of this year.
More than 40,000 new businesses were launched in
Saudi Arabia during the third quarter, with 43.3 percent of SMEs located in
Riyadh.
The report highlighted the notable progress in new
business creation in Al-Qassim province, particularly in the mining and
agriculture sectors, making it home to nearly 60,000 SMEs and 105 active mining
licenses.
“While its mining industry produces 4 million tons
of bauxite each year, the only such source in the Middle East, the region’s
farmers produce 1.22 million tons of dates, lemons, oranges, grapes, and other
agricultural products each year, giving credence to its nickname as the
breadbasket of the Kingdom,” stated Monsha’at.
The report highlighted the ongoing role of the
private sector in propelling Saudi Arabia’s economy in the third quarter of this
year.
Monsha’at reported an 18.8 percent year-on-year
increase in private sector investments in SMEs during the third quarter,
reaching SR262.7 billion ($70 billion).
“The Kingdom’s robust non-oil growth is a symptom of a rapidly maturing
ecosystem whose entrepreneurs are now driving Saudi Arabia’s ambitious
diversification targets,” Monsha’at highlighted in the report.
It added that the National Industrial Development
and Logistics Program played a significant role in facilitating the entry of
more SMEs into the industrial and manufacturing sectors during the third
quarter.
In the Kingdom, where over 11,000 factories are
now operational, the Ministry of Industry and Mineral Sources issued 136 new
industrial licenses in August 2023 alone.
Furthermore, Monsha’at organized Entrepreneurship
Week earlier this month at its enterprise support centers in Riyadh, Jeddah,
Madinah, and Alkhobar, aiming to bolster the SME ecosystem in the Kingdom.
The specialized forum, as reported by the Saudi
Press Agency, highlighted key initiatives and programs supporting the expansion
of startups in the market.