SMEs in Saudi Arabia surge by 25.6%

With a proportion of 35.4%, the Riyadh area has the biggest share of all firms, followed by the Makkah region (21%), and Al-Shraqiyah (12.7%). Report from MonshaatSA

The Small and Medium Enterprises General Authority (Monsha'at) said on Sunday that the number of small and medium-sized businesses (SMEs) has increased to 892,000, a 25.6% increase from the fourth quarter of 2021.

The statement from Monsha'at coincided with the release of its Q2 2022 report and its assessment of a number of various investment areas and files.

According to the survey, with a proportion of 35.4%, the Riyadh area has the biggest share of all firms, followed by Makkah with 21% and Al-Shraqiyah with 12.7%.

According to Monsha'at, 81% of these businesses are classified as micro and small businesses.

In Saudi Arabia, the proportion of businesses owned by women reached 45% of all start-up company owners, which is double the percentage that was attained in 2017.

Regarding the investment financing secured by Saudi start-up businesses, it increased by 244%, topping SR2.19 billion in the first quarter of 2022 on an annual basis.

Saudi Arabia has been ranked as the second most active venture capital market in the Middle East and North Africa regions during the same time period as a result of this increase.

According to the survey, the Makkah area has seen a tremendous amount of entrepreneurship since it is home to more than 21% of all SMEs in Saudi Arabia.

Compared to businesses operating in other sectors, the food and beverage industry has received the largest share of investment capital in the first half of 2022.

The food and beverage industry attracted investments of SR 700 million during the first half of this year, according to the MAGNiTT platform report for the first half of 2022.

The Monsha'at study also noted that there is now a lot of activity in Saudi Arabia related to coffee production.

With more than 400,000 coffee trees, Saudi Arabia has increased the output of Khawlani coffee by as much as 70%.

It was revealed that the Saudi Coffee Company will spend SR1.2 billion in the country's coffee industry over the next ten years.