Saudi Arabia’s banking sector will provide loans worth $73.48 billion to SMEs over 6 years

Saudi Arabia’s banking and finance sector has granted facilities worth SAR 275.576 billion ($73.48 billion) to small, medium and micro enterprises (SMMEs) over the last six years (2018-2023). This represents an increase of 154 percent compared to 2018, when the total amount reached SAR 108.519 billion.

Annually, the number of banking sector loans in 2023 recorded an increase of 20.3%, i.e. SAR 46.544 billion compared to SAR 229.032 billion at the end of 2022. By the end of the fourth quarter of 2023, the total value of banking and financial sector loans increased by 3 percent of SAR 268.574 billion for the third quarter.

The Saudi Central Bank also revealed in its monthly statistical bulletin that in March 2024, medium-sized enterprises accounted for the largest share of the total number of facilities – 57.5% or SAR 158.411 billion. This is followed by small enterprises with a share of 33.5 percent or SAR 92.275 billion and micro enterprises with a share of 9 percent or SAR 24.890 billion.

Saudi Arabia’s banking sector had the largest share of total loans, accounting for 94 percent or SAR 258.295 billion. Meanwhile, financial companies contributed SAR 17.281 billion, representing about 6 percent.

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Saudi Arabia’s General Authority for Small and Medium-sized Enterprises classifies medium-sized enterprises as having revenues between SAR 40 million and SAR 200 million and employing between 50 and 249 employees. Meanwhile, small enterprises have revenues of SAR 3 million to SAR 40 million and employ six to 49 employees, while micro enterprises have revenues of up to SAR 3 million or one to five employees.

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