Saudi Arabia’s MSME Credit Facilities Surge by 16% in Q1 2024
Recent data from Saudi Arabia’s central bank, SAMA, revealed a 16 percent annual increase in credit facilities provided to micro, small, and medium enterprises in the first quarter of 2024.
Breaking Down the Numbers
Figures indicated that the borrowing lines allocated to this sector reached SR293.43 billion ($78.25 billion), up from SR252.02 billion in the same period of 2023.
Who’s Providing the Credit?
Saudi banks extended 94 percent of these credit facilities, while the remaining 6 percent was granted by finance companies.
Where’s the Money Going?
Medium enterprises received the lion’s share of the total credit at 55 percent, amounting to SR160.6 billion. Small companies also saw significant growth, with a 32 percent increase to reach SR103.5 billion.
Characteristics of Different Enterprise Sizes
Micro enterprises, with revenues up to SR3 million and a workforce of no more than five employees, received a 30 percent increase in credit, totaling SR29.4 billion.
Saudi Arabia’s Focus on SMEs
The Kingdom is heavily investing in its SMEs to diversify the economy away from oil and create a competitive funding environment.
Government Support
Reforms have simplified business investment processes, with the government aiming to increase the sector’s share of GDP from 21 percent to 35 percent by 2030.
Key Figures from Monsha’at
In Q1 2024, Monsha’at reported that 9,644 SMEs benefited from support centers, 15,766 trainees used the e-Academy, and 1,558 accessed the Mazaya platform.
Investment Trends
Despite a regional dip in total Venture Capital funding, Saudi Arabia led MENA in capital deployed, securing 35 deals worth $240 million in Q1 2024.
Future Growth Opportunities
Saudi SMEs are strategically positioned to capitalize on global opportunities, especially in sectors like renewables, logistics, fashion, Islamic finance, fintech, healthcare, and agri-tech.