A report has revealed that the number of workers in small and medium enterprises (SMEs) in Saudi Arabia is projected to rise to 8.88 million by the end of 2025, exceeding the annual target of 7.55 million. This growth aligns with the Kingdom's strategic plan to reach 10.23 million workers by 2030.
According to the report, the baseline for the indicator was set at 4.77 million workers, before the indicator began to rise, driven by the expansion of non-oil activities, the implementation of major projects, and the growth of SMEs. Additionally, support for employment and improvements in the business environment have played a significant role.
Details of the Report
The report indicates that the methodology for calculating the indicator has been updated based on the reclassification of SMEs, relying on administrative records from the Ministry of Commerce, the Ministry of Human Resources and Social Development, and the General Organization for Social Insurance. This update has contributed to enhancing the accuracy of the measurement, with the first reading of the updated indicator released in 2020, when the number of workers in SMEs was 4.77 million.
By the end of 2025, this number is expected to rise to 8.88 million, reflecting the success of the economic policies implemented.
Background & Context
This growth reflects the impact of economic and regulatory reforms associated with Saudi Vision 2030, which aims to empower entrepreneurs and expand the base of SMEs. These enterprises are considered a key driver for employment and non-oil economic growth, contributing to the achievement of sustainable development goals.
Furthermore, the General Authority for Small and Medium Enterprises has played a crucial role in supporting the entrepreneurial ecosystem in 2025 by organizing, establishing, and supporting accelerators, incubators, and entrepreneurship hubs, activating co-working spaces, and providing empowerment programs for business owners.
Impact & Consequences
The efforts included legislative and regulatory reforms to support SMEs, such as amending financial compensation schedules for foreign labor and extending work permits. Additionally, the establishment and development of the Small and Medium Enterprises Bank have been crucial in enhancing the financing ecosystem and bridging the funding gap.
These financial solutions emphasize the importance of integration between financing entities, banks, and the private sector, which enhances the ability of SMEs to expand and increase their contribution to job creation and economic activity.
Regional Significance
The increase in the workforce to 8.88 million serves as an important indicator of the transition of SMEs from their traditional role to a more influential position in the labor market. These enterprises are key drivers for employment and economic diversification, thereby enhancing the private sector's contribution to sustainable development.
In light of global economic challenges, the success of these policies could serve as a model for other Arab countries seeking to enhance the role of the private sector in their economies.