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  • 20-04-23

    Credit Facilities for MSMEs in Saudi Arabia Increase by 13 percent in 2022

    (MENAFN) Official figures released by the Saudi Central Bank, also known as SAMA, revealed that credit facilities given to micro, small, and medium enterprises (MSMEs) in Saudi Arabia reached SR229.3 billion (USD61.4 billion) in 2022, up by 13 percent from the previous year. Banks accounted for 93 percent of the total financing, providing credit facilities worth SR213.2 billion, while the remaining 7 percent or SR16.1 billion was provided by financial institutions.

    According to the report, small enterprises received SR7.54 billion of credit facilities, while medium enterprises received SR5.34 billion. The SAMA report also pointed out that medium enterprises accounted for 62 percent, or SR132.97 billion, of the total credit facilities in 2022, while small enterprises represented around SR7.54 billion during the same period.

    The growth of MSMEs is crucial to Saudi Arabia's Vision 2030 goals, as the country is on a path of economic diversification. In March, a top official of Saudi Arabia's Social Development Bank (SDB) revealed that the bank aims to provide SR24 billion of finance for MSMEs in the next three years. Sultan Al-Hamidi, the Chief Business Officer of SDB, said the bank has provided finance worth SR16 billion to 40,000 SMEs in Saudi Arabia since 2008.

    Al-Hamidi also revealed that SDB handed over USD5 billion of financing to some 9,000 SMEs in 2022 alone. He added that the bank starts by helping MSMEs from the idea stage until expansion, and that the bank has a plan to deploy around SR24 billion in the coming three years.

    The increase in credit facilities for MSMEs in Saudi Arabia is a positive development for the country's economy and is expected to drive economic growth and job creation. The government's efforts to provide financial support to MSMEs are crucial to achieving the country's Vision 2030 goals and diversifying the economy away from its dependence on oil revenue.

    MENAFN20042023000045014228ID1106052582

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