The Small and Medium Enterprises General Authority “Monsha’at” showed in its SME Monitor report for the third quarter of 2022, released today, that the number of SMEs reached 978,445, an increase of 9.7% compared with the second quarter of this year. Riyadh Region accounts for 36.1% of all enterprises, Makkah Region for 20.6%, and the Eastern Province for 12.5%.
The report explained that SMEs are spread across a wide range of economic activities, with the wholesale and retail trade sector representing nearly a third of the total (30.7%), followed by the construction sector (20.7%) and the administrative and support services sector (11.6%).
The report emphasized the role of financial technology in developing the Kingdom’s digital economy through active participation and private sector investment, noting that the expected increase in fintech companies by 2025 is estimated at 65% compared with 2022.
The report showed notable growth in the Kingdom’s venture capital ecosystem, with investment funding up 93% year on year in the third quarter of 2022, in addition to growth in the startup market, which recorded major deals during the quarter. Investment funding raised by Saudi technology startups rose 266% to reach SAR 3.1 billion by the end of the third quarter of 2022.
The third-quarter report addressed support for digital transformation in the Kingdom, noting that the Kingdom’s strong digital infrastructure helped ensure business continuity during the coronavirus pandemic and boost the digital sector’s prosperity. The Kingdom ranked second among the Group of Twenty countries in digital competitiveness, according to the Digital Competitiveness Report for 2021.
The quarterly report highlighted Al-Jouf Region and its rich agricultural land and diverse crops, especially olives: the region produces around 67% of the Kingdom’s olive oil, is home to more than 5 million olive trees planted on 52,000 feddans, and produces 5,500 tons of olive oil and 33,000 tons of olives annually. Investment in the sector has also diversified, with producers expanding their production lines by using olives in additional fields such as cosmetics and perfumes.
Those interested can view the report at: https://monshaat.gov.sa/sites/default/files/2022-12/SME%20Monitor%20Quarterly%20Report%20Q3%202022%20-%20AR.pdf.pdf.
Each edition of the SME Monitor report focuses on presenting the latest figures on the SME sector and the entrepreneurship ecosystem, hosts experts and entrepreneurs to talk about their experiences, showcases SME success stories, and highlights the Kingdom’s regions rich in investment opportunities, along with the most prominent projects and opportunities in promising sectors.