Why Every Entrepreneur Should Be Watching Saudi Arabia’s SMEs!

The role of small and medium enterprises (SMEs) in Saudi Arabia’s Vision 2030, a strategic framework launched in 2016 to diversify the economy and reduce oil dependency.  Vision 2030, under the leadership of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, aims to transform Saudi Arabia into a vibrant society, a thriving economy, and an ambitious nation. A key economic objective is to increase the private sector’s contribution to GDP from 40% to 65%, with SMEs playing a pivotal role. The vision targets raising SMEs’ GDP contribution from 20% to 35% by 2030, recognizing their potential to drive growth and innovation. SMEs are defined as businesses with specific employment and revenue thresholds, and they are crucial for economic development globally. In OECD countries, SMEs account for 60-70% of jobs, with significant shares in Italy and Japan and a smaller share in the United States. In Saudi Arabia, with over two-thirds of the population under 30 and 100,000 graduates entering the job market annually, SMEs are vital for addressing unemployment and fostering entrepreneurship. Strategic Objectives and Economic Impact Vision 2030 includes specific strategic objectives for SMEs under the “A Thriving Economy” theme, such as enabling job creation through SMEs and micro-enterprises and nurturing an innovation and entrepreneurship culture. The