Saudi Arabia’s SME ecosystem has reached a new milestone, with the total number of commercial registrations topping 1.7 million, according to the latest SME Monitor report from Monsha’at. The report for the second quarter of 2025 highlights the vibrant expansion of the Kingdom’s non-oil economy, driven by a surge in new enterprises and robust venture capital activity.
Broad-Based Commercial Growth
The report confirms a robust expansion across the wider SME sector. Following the addition of over 80,000 new registrations in the second quarter of 2025 alone, the total number of existing commercial registrations in Saudi Arabia has now reached 1.7 million. The Riyadh Region continues to lead this growth, accounting for 35.2% of new enterprises, followed by Makkah and the Eastern Province. The e-commerce sector demonstrated particularly strong momentum, with women now owning 47% of new e-commerce registrations.
Dominance in Regional Venture Capital
Alongside the growth in registrations, the Kingdom has cemented its commanding lead in venture capital investment. In the first half of 2025, Saudi startups raised a staggering SR3.225 billion ($860 million) across 114 deals. This figure represents an incredible 56% of the total venture capital deployed throughout the entire Middle East and North Africa (MENA) region during the same period, showing an annual growth of 116% in capital value.
Supportive Initiatives And Promising Sectors
The continued success of the SME ecosystem is attributed to a range of supportive government programs. The report highlights the Kafalah Program, which has facilitated over SR121 billion in financing products by the end of Q2 2025, benefiting more than 26,000 establishments. The report also identified the education sector as a particularly promising field for investors, with an estimated SR50 billion in opportunities by 2030, where SMEs already constitute 98% of all educational establishments.
About Monsha’at
Monsha’at is the Small and Medium Enterprises General Authority of the Kingdom of Saudi Arabia. It is responsible for organizing, supporting, developing, and sponsoring the SME sector in line with Saudi Vision 2030. Through various initiatives, financing programs, and data-driven reports, Monsha’at aims to increase the productivity of SMEs and their contribution to the national GDP.
Source: Zawya
