Saudi Arabia’s banking and financing sectors supported small, medium, and micro enterprises with SAR262.7 billion in credit facility by the end of the second quarter of 2023. That is the largest level of support to date, achieving an annual growth of around 18.8 percent. During the same quarter last year, the volume of credit facility amounted to SAR221.0 billion. Meanwhile, the total volume of credit facility provided in 2018 reached SAR108.5 billion.
Banking sector’s contribution
Looking at the banking sector’s quarterly performance, the total volume of credit facility it provided to small, medium, and micro enterprises achieved a quarterly growth of 4.1 percent. That represents an increase in value of about SAR10.4 billion. The banking sector contributed the largest volume of credit facility, with an estimated value of SAR245.3 billion.
Data revealed that medium-sized enterprises took the largest share, with about SAR149.4 billion. That is equivalent to 60.9 percent of the total credit facility provided.
According to the Small and Medium Enterprises General Authority, medium enterprises have revenues ranging from SAR40 million to SAR200 million. Moreover, the number of their employees ranges from 50 to 249 employees.
Small and micro-enterprises
Meanwhile, small enterprises received SAR83.9 billion in credit facility during Q2 of 2023, of which SAR75.7 billion were provided by the banking sector. Small enterprises are those whose revenue ranges from SAR3 million to SAR40 million. The number of their employees ranges from 6 to 49 employees.
Moreover, micro-enterprises received SAR23.2 billion in credit facility by the end of Q2 of 2023, of which SAR20.2 billion was provided by the banking sector. Micro-enterprises are defined as those whose revenues amount to no more than SAR3 million and whose number of employees ranges from 1 to 5 employees.
Employment sector support in Saudi Arabia
Earlier, a source from Saudi Arabia’s Human Resources Development Fund (HADAF) revealed to local media that there are currently 24 active agreements to support employment-related training in high-growth sectors. The agreements’ combined value is over SAR1.5 billion or $400 million. The fund has concluded important partnerships with major national projects and companies.
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