The General Authority for Small and Medium Enterprises revealed that the Eastern Region recorded the third highest number of commercial records in the Kingdom with 235.6 thousand records, following Riyadh’s 482.6 thousand and Mecca’s 342.8 thousand.
By the end of Q2 2024, there were approximately 1.5 million active commercial records in the Kingdom, with 121.5 thousand issued during the second quarter of this year. This period also saw a 78% increase in the issuance of commercial records compared to the same quarter last year.
Women-owned businesses accounted for 45% of the issued commercial records, highlighting the private sector’s significant role in driving national economic growth. This data was presented in the Q2 2024 report by the SME Observatory.
Bridging the Funding Gap
SMEs emphasized that fintech companies are crucial in addressing the funding gap faced by small and medium enterprises through ten channels, including:
- Alternative lending platforms
- Debt instruments
- Crowdfunding
- Debt-based crowdfunding
- Digital payments
- Enhanced point of sale systems
- Invoice financing
- Real-time financial analytics
- International payments
- Currency exchange platforms
There is a goal to establish 525 fintech companies by 2030. As of May 2024, liquidity in the Kingdom reached an all-time high of 2.8 trillion riyals, marking an 8.6% annual increase.
Key Projections
According to the report, over 52.5% of financial transactions are expected to be conducted through digital wallets by 2025, with the value of transactions projected to reach 45 trillion riyals by 2026.
In Q2 of this year, over 20,000 SMEs and entrepreneurs benefited from the Authority’s services and programs, which enhanced skills, business development, and access to funding. Franchise programs also provided expansion opportunities. The SME Academy trained 8,241 participants, 581 businesses qualified for the “Jadeer” service, 500 benefited from innovation centers, 86 brands were listed on the Franchise Center platform, and three SMEs were listed on the parallel market “NOMU” under the “Tamouh” program.
