Monsha’at, the Saudi Arabia Small and Medium Enterprises (SMEs) General Authority, has released its latest quarterly SME Monitor, offering a detailed analysis of emerging trends shaping the Kingdom’s SME ecosystem. The report emphasizes a remarkable 67% quarterly increase in commercial registrations, the growth of green financing initiatives, and the increasing involvement of Saudi SMEs in the global green economy.
Aligned with Saudi Vision 2030’s sustainability goals, the report identifies numerous opportunities for Saudi SMEs to support the Kingdom’s ambitious renewable energy targets. These include adopting circular economy principles, investing in renewable energy, environmental megaprojects, reforestation, eco-tourism, electric vehicle adoption, and sustainable business practices. With the Saudi Green Initiative investing $186 billion into the green economy, there are vast prospects for sustainable growth within the SME sector.
A critical factor driving this transformation is the public sector’s progressive policies promoting green innovation and sustainability. The report highlights investments from the Green Financing Framework (GFF), which has facilitated a circular economy, and accelerators such as Sidra and Mega Green, along with various venture capital (VC) funds. These initiatives are fueling investments in key areas such as food security, water, agriculture, energy transition, sustainable manufacturing, and smart city infrastructure.
Rakan Alsheikh, Deputy Minister for Policies and Economic Planning, emphasized the crucial role SMEs play in Saudi Arabia’s economic transformation. He noted, “They are not just business entities but pioneers of sustainable solutions that create lasting impact,” underscoring the sector’s ability to integrate green technologies and principles into their operations.
The SME Monitor also features insights into global SME sustainability trends. According to the report, three-quarters of SMEs in the OECD are actively working to reduce their carbon footprint, and 12% of SMEs in the EU generate renewable energy onsite. With the global green technology market expected to reach $135 billion by 2030, SMEs that embrace sustainability are poised to gain a competitive edge.
The report further reveals a significant increase in commercial registrations in Saudi Arabia during Q4 2024, with 160,000 new registrations. Sectors such as e-commerce saw a notable rise, reaching 40,953 registrations, reflecting a 10% year-on-year increase. Additionally, over 100,000 SMEs benefited from Monsha’at’s wide range of programs designed to support financing, innovation, and business development.
Saudi Arabia’s venture capital (VC) ecosystem also remained a leader in the MENA region through Q4 2024, with $750 million invested in 178 deals, representing 39% of all VC investments in the region for that year.
