RIYADH: Saudi entrepreneurs received funding worth SR8.1 billion ($22 billion) in the first quarter as the number of small and medium-size businesses operating in the Kingdom rose by 14.6 percent, according to a government report.
The number of SMEs in the Kingdom increased to 752,560 in the first three months of the year from 650,550 a year ago, Saudi Arabia’s General Authority for Small and Medium Enterprises, also known as Monsha’at, said in its “SME Monitor” quarterly report.
The SMEs received the funds through Monsha’at services led primarily by its Kafalah program, which guaranteed SR64.6 billion in secured loans to entrepreneurs.
According to the report, the Tamweel platform enabled SR12.3 billion in loans, the Saudi Venture Capital Company invested SR1.4 billion, and the Indirect Lending Initiative provided low-cost loans of SR2.5 billion to companies.
“SMEs must have their basic needs fulfilled,” Saleh Alrasheed, the governor of Monsha’at, said in a statement.
“They need streamlined bureaucracy, lower fees, and the ability to compete in the market. We are ensuring that SMEs get the support they need and that growth is transformed into sustainable business models.”
In the report, Lateefa Alwaalan, managing director of Endeavor Saudi, noted that Riyadh is quickly becoming an industrial hub with a global reach.
She added: “Many entrepreneurs see Riyadh as the gateway to the largest consumer market in the GCC.”
According to the report, over 239,000 SMEs employ more than 1.8 million people in Riyadh alone, which makes the city the most dynamic in the region for the growth of small businesses.
The report further added that the Global Economic Council, also known as GEC, which was organized in Riyadh in March, also played a crucial role in elevating the city’s status as a hub for small businesses.
Over the course of the four-day event, SR51.8 billion worth of deals were signed, along with over 10 rounds of financing for Saudi startups.
