By the second quarter of 2023, the number of small and medium enterprises in the Kingdom reached about 1.23 million, an increase of 2.6% compared to the first quarter of this year. This number included 17,888 medium enterprises, 152,825 small enterprises, and 1.06 million micro enterprises.
According to the report of the General Authority for Small and Medium Enterprises for the second quarter of 2023, small and medium enterprises constitute 99.7% of the total enterprises in the Kingdom, most of which are micro enterprises that continue to expand in terms of number, size, and scope, which reflects the spirit of innovation and the culture of pioneering work among citizens. The kingdom.
Distribution of establishments
The vital small and medium enterprises system extends across all parts of the Kingdom, as it includes Riyadh, Makkah Al-Mukarramah, and the Eastern Province, accounting for 71.8% of the total small and medium enterprises in the Kingdom.
The Riyadh region had the largest share of the growth of the private sector in the Kingdom during the second quarter of 2023, as it embraces 42.3% of the 1.23 million small and medium enterprises in the Kingdom, with a noticeable increase from the first quarter of 4.8%, and this growth reflects a thriving and innovative investment scene. Thanks to the effective policies and initiatives that seek to promote and develop a culture of entrepreneurship.
growth in Asir
Asir achieved fourth place at the level of the Kingdom’s regions as the largest region in terms of the number of small and medium enterprises, with 64,440 establishments distributed among its 17 governorates, with an employment rate of 92.5%, according to the report of the General Authority for Small and Medium Enterprises “Monshaat” for the second quarter of 2023.
The report confirmed the attractiveness of the geographical location of the region and the availability of a high-level infrastructure environment with the huge investments made by the public sector to develop hundreds of new companies every three months, indicating that there are 57,134 micro-enterprises with revenues of 3 million riyals, representing 88.59% of the number of small and medium enterprises in Asir. In addition to 6901 small establishments achieving annual revenues starting from 3 million riyals and up to 40 million riyals, while medium enterprises did not exceed 405 establishments, representing 0.6%, with revenues exceeding 40 million and up to 200 million riyals annually.
Wholesale and retail facilities and car maintenance topped the most popular among merchants in Asir with a rate of 28.4%, followed by construction and building materials facilities with a rate of 20.1%, and the accommodation and food and beverage sectors came third with a rate of 12.8%, representing 8248 establishments.
Distribution of Establishments in Regions (2nd Quarter 2023)
518,516 Riyadh 42.3%
228.337 Makkah Al-Mukarramah 18.6%
134,238 Eastern Region 10.9%
64,440 Aseer 5.3%
281,273 other regions 22.9%
Enterprise Financing (First Half 2023)
1.7 billion riyals, the volume of financing
28% of deals are in the Middle East and North Africa
83% of total financing in the e-commerce and retail sectors
67% of the deals were concluded by investors residing in the Kingdom