Saudi Gazette report

RIYADH — The number of new commercial registrations during the second quarter of 2025 has exceeded 80,000, bringing the total number of existing commercial registrations in Saudi Arabia to 1.7 million. This was revealed in the SME Monitor report, published by the Small and Medium Enterprises General Authority (Monsha'at).

The report focused on key figures and developments within the SME system, highlighting supporting initiatives and reviewing the education sector as a promising field for investors.

According to the report, e-commerce registrations reached 39,366, and 38 percent of the registrations were owned by youth and 47 percent owned by women. Riyadh Region topped the number of new registrations, reaching 28,181 (35.2 percent). Makkah was second with 14,498 registrations (18.1 percent ), followed by the Eastern Province with over 12,985 registrations (16.2 percent), Qassim with 4,920 (6.2 percent ), and the remaining regions accounting for 19,416 registrations (24.3 percent ).

The report was opened by Minister of Education Yousef Al-Benyan, who confirmed that the volume of investment opportunities in the education sector is estimated at more than SR50 billion by 2030. He noted that small and medium enterprises constitute about 98 percent of educational establishments, making them the driving force of this sector. Furthermore, the percentage of women's ownership of educational establishments reached 39.4 percent, reflecting their growing leadership and investment role.

The report provided updates on several of Monsha’at’s SME enablement programs that continue to invigorate the broader ecosystem. For instance, a total of 3,175 SMEs benefited from the Tomoh Program during the second quarter of 2025, with many of them subsequently being listed on the parallel market (Nomu).

In terms of financing, the report highlighted the Kafalah Program, launched in 2006 to support SMEs and entrepreneurs. The program's total products and initiatives reached SR121 billion by the end of the second quarter of 2025. The value of guarantees provided exceeded SR86.8 billion, benefiting 26,095 establishments through 12 available financing programs.

The report addressed the performance of the venture capital system in the Kingdom during the first half of 2025, revealing that Saudi startups collected SR3.225 billion through 114 deals. This achieved an annual growth of 116 percent in capital value and a 31 percent annual growth rate in the number of deals, representing 56 percent of the total venture capital investment in the Middle East and North Africa (MENA) region. Funding is expected to exceed SR3.75 billion by the end of the year.

The report highlighted Riyadh's role as a pivotal economic center, noting that its economy contributes approximately 50 percent of the Kingdom's non-oil GDP. Furthermore, Riyadh has attracted more than 600 international companies to establish their headquarters there through the regional headquarters program.

The report confirmed that the Kingdom's private sector continues to record outstanding performance indicators, driven by the growth of non-oil investments and sustained economic activity. Monsha'at initiatives, such as the Monsha'at Academy, the Mazaya Platform, and innovation centers, have significantly contributed to supporting tens of thousands of entrepreneurs.

The SME Monitor report is part of a series of quarterly reports issued by Monsha'at. Its purpose is to convey the latest developments and provide accurate data on the entrepreneurship ecosystem's current and future prospects, supporting decision-makers, investors, and entrepreneurs in the Kingdom.