Monsha'at report charts sustainable trends among Saudi and Global SMEs

Arab News

02-03-2025

Monsha'at, Saudi Arabia's Small and Medium Enterprises General Authority, has released its latest quarterly SME Monitor, providing an in-depth look at key trends shaping the Kingdom's SMEs ecosystem. This edition highlights a 67 percent quarterly increase in commercial registrations, the expansion of green financing and sustainability programs, and the growing role of Saudi SMEs in the global green economy.
With Saudi Vision 2030's commitment to sustainability, the report highlights many of the ways in whichSaudi SMEs can contribute to the Kingdom's ambitious renewable targets, from adopting circular economy principles to investing in renewable energy, reforestation, and environmental megaprojects, eco-tourism, EV adoption, and sustainable reporting. With $186 billion being invested by the Saudi Green Initiative to support the local green economy, the opportunities for sustainable SME growth are ripe.
If the Kingdom's private sector is rapidly adopting, it's thanks in large part to ambitious public sector policies supporting green growth and innovation, the report shows. In addition to sizeable investments by the Green Financing Framework (GFF) to create a more circular economy, accelerators like Sidra and Mega Green and a number of VC funds are enabling a surge of investments in food security, water, and agriculture, circular economy, energy transition and storage, sustainable manufacturing, smart cities and sustainable infrastructure, and more.
'At the heart of Saudi Arabia's transformation lies our vibrant SME sector, which serves as a powerful driver of the economy,' Rakan Alsheikh, the deputy minister for policies and economic planning, told Monsha'at. 'They are not just business entities but pioneers of sustainable solutions that create lasting impact. Their agility and adaptability allow them to integrate renewable energy, green technologies, and circular economy principles into their operations, reinforcing Saudi Arabia's commitment to a more sustainable future.'
In addition to its coverage of sustainability trends in Saudi Arabia, the latest SME Monitor also has a special section on global developments in SMEs sustainability.
In the OECD, for example, three-quarters of SMEs are now actively working to reduce their carbon footprint, while 12 percent of EU SMEs generate renewable energy onsite. With the global market for green technology and sustainability projected to reach $135 billion by 2030, early adopters stand to gain significant competitive advantages.
In its survey of broader SMEs developments across Saudi Arabia, the report also reveals a notable uptick in commercial registrations in Q4 2024, a key indicator of the country's consistently dynamic entrepreneurial landscape. In addition to 160,000 new registrations, sectors like e-commerce reached 40,953 total registrations that quarter, an impressive 10 percent year on year increase.
Thanks to the variety of enablement, financing, franchising, innovation, and business development programs offered by Monsha'at, more than 100,000 SMEs benefitted from the Kingdom's chief SME enabler in Q4 2024, the report shows.
Moreover, Saudi Arabia's VC funding ecosystem continued to lead MENA through Q4 2024, with $750 million deployed to Saudi-based startups over 178 deals that year, representing 39 percent of all investments in the region that year.