The General Authority for Small and Medium Enterprises (Monsha’at) has reported that 77,312 micro, small, and medium-sized enterprises (MSMEs) in Saudi Arabia have obtained the ‘Enterprise Size Certificate’ to date. This certification is a crucial step for MSMEs to benefit from government tender participation and to access financing options. These certified entities represent 6% of the total 1.27 million enterprises operating within the kingdom.
According to Monsha’at, the breakdown of certifications is as follows: 35,857 for micro-sized, 36,183 for small, and 10,339 for medium-sized enterprises. The authority highlighted that 45% of these enterprises sought the certificate to gain advantages in government tender applications, while 17.76% aimed at securing funding, and 10.10% intended it for indirect lending purposes.
The ‘Enterprise Size Certificate’ offers several benefits, including exemption from providing preliminary guarantees, increased opportunities through preference mechanisms for local small and medium-sized enterprises (SMEs), and priority in limited competitions and direct purchases. In addition, certified SMEs receive prioritization in awarding contracts when bids are equal, provided that the competition conditions do not require the division of equal bids.
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Eligibility for the certificate requires an active commercial registration or a work file number with the Ministry of Human Resources and Social Development, as well as active status and verified employee numbers from the same ministry. Revenue data or the filling out of a declaration is also necessary during the issuance process.
Monsha’at defines micro-sized enterprises as those with at least one employee but not exceeding 249, and with annual revenues not surpassing 200 million Saudi Riyals. The applicant must also hold an approved role with both the Ministry of Commerce and the Ministry of Human Resources and Social Development to print the certificate.
