Micro, small and medium enterprises are witnessing promising growth due to the strong customer demand and the steady increase in lending SME in Saudi Arabia.
By providing SR2 billion ($533 million) to Saudi entrepreneurs in 2021, the kingdom ranked second in MENA in startup funding activities.
Saudi banks and finance companies have been at a lending peak over the last few years, with both collectively extending loans worth SR200.3 billion ($53.4 billion) to the MSME businesses in the third quarter of 2021, up from SR175.7 billion in the third quarter of 2020, SAMA revealed.
Finance included SR14.2 billion credit provided by financial companies to SMEs in the third quarter of 2021. (Recording 31-percent growth on a year-on-year basis)
The recent spree in MSME credit indicates that the country’s business environment is enhancing despite COVID-infused challenges.
The increasing consumer spending in Saudi Arabia created a pent-up demand for goods and services provided by the country’s SME sector. Therefore, businesses are moving towards further lending to meet the growing demand in the market.