Private Sector Investment Brings Good News for SMEs in Saudi

The power of SMEs in driving national growth is well recognized by The Kingdom. As central drivers of employment and investment in the nation, the growth of SMEs has been encouraged in many ways. With how fast they are growing, it would not be far-fetched to say that SMEs seem to be the key to a diversified economy.?

According to Vision 2030, the nation aims to see a huge increase in SME contribution to the GDP – from 20% to 35%. Such ambitious growth is encouraged under the greater aim of empowering the private sector. With the launch of the Shareek program by Crown Prince Mohammed bin Salman Al Saud, the Kingdom will see an infusion of more than $1.3 trillion into the private sector by 2030. Clearly, private sector investment is on the rise, and there is no slowing down.?

Since SMEs form most of the nation’s private sector, they are bound to receive a mountain of support throughout their growth journey - catapulting Saudi SMEs into the global market.?

SMEs Benefit from Private Sector Investment Programs

Private sector investment saw increased growth for SMEs last year, as highlighted by the latest SME Monitor report. The Kingdom continues to witness the announcement of programs and initiatives that further enrich the private sector.?

The Aramco Taleed Program boasts a combined capital exceeding SAR 3 billion, aimed to benefit over 15000 SMEs annually.?

Launched in October last year, the program is said to have shown a promising contribution to the SME ecosystem rather quickly. This is because the program contains a range of initiatives that job-matches local talent, creates business opportunities, and enables the SME ecosystem. In this manner, the program aids SMEs by solving a lot of the problems they face today.?

Not only this, the Aramco Taleed Program will help SMEs expand across five pivotal domains: sustainability, digital, manufacturing, industrial, and social innovation. A concentration on these domains will have a positive ripple effect on the Kingdom, as it successfully moves away from an oil-dependent economy.

Similarly, the Meta Boost training program is another impactful initiative introduced last year. With the goal to help SMEs expand globally, the program aims to support 20,000 Saudi SMEs in online growth.?

Launched in collaboration between Monsha’at, Meta, and MCIT, the program offers SMEs training in Meta’s tools with the aim of increasing productivity – ultimately accelerating business growth. Armed with a range of free tools and knowledge of the best digital strategies, Saudi SMEs will be able to establish themselves online and gain a platform that gives them access to the global market.?

Unlocking the Potential of the Fintech Sector Can Aid SMEs?

Digitization of services is at the forefront of businesses today. Saudi SMEs can benefit from enhanced productivity by leveraging digital services, especially Fintech. The Kingdom has noticed this, and taken steps to boost the Fintech sector. For example, Saudi Venture Capital Co., under the SME Bank, aims to introduce an $80 million investment toward the Fintech sector in The Kingdom. Through such initiatives, Fintechs, such as Lamaa, can help Saudi SMEs maintain their cash flow and facilitate expansive growth.?

A Word from Lamaa

The nation is set to see an influx of investment into the private sector. Several programs under Vision 2030 are aiding SMEs in launching their business globally. In line with the Kingdom’s vision of a thriving economy, Lamaa’s Dynamic Discounting and Grow Now, Pay Later (GNPL) solutions can help SMEs expand to the next level while maintaining their cash flow and conducting business activity seamlessly. With such endeavors, Saudi SMEs are well on the way to making their mark on the global market.?

To learn more about our products and offerings, please visit www.lamaa.sa.