Saudi SMEs show optimism towards 2025 upon Mastercard Confidence Index
This positive outlook aligns seamlessly with the Kingdom's Vision 2030 objectives, aiming to diversify the economy and enhance the contribution of SMEs to the national GDP.
A significant majority representing 93% of the SMEs surveyed in the Kingdom are confident about the next 12 months.
Business owners are recognising the critical role of seamless and secure transactions in today's marketplace while prioritising the adoption of advanced data analytics and insights, viewing these tools as essential for informed decision-making and strategic growth.
Mastercard's President for Eastern Europe, Middle East, and Africa, Dimitrios Dosis, said: 'Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience.'
Dosis elaborated: 'As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion. Their ability to adapt and grow in a rapidly evolving business landscape reflects the strength of an ecosystem that prioritizes access to finance, digital enablement, and sustainable growth.'
Meanwhile, the widespread adoption of digital payments among Saudi SMEs underscores a strategic move towards efficiency and customer satisfaction.
With 99% of the SMEs surveyed in Saudi Arabia now accepting digital payments, marking an increase from 88% in the Mastercard SME Confidence Index 2023, business owners are leveraging digital transactions to fast-track their growth.
Mastercard's Division President for West Arabia, Adam Jones, noted: 'The confidence among SMEs in Saudi Arabia highlights the strength and adaptability of this sector. As businesses continue to embrace digitalization and new technologies, access to secure payments, data-driven insights and financial solutions will be key enablers of their success.'
SMEs cite enhanced credibility with government and financial institutions (56%), streamlined transactions with suppliers and employees (55%), and faster access to revenues (55%) as the top benefits of a digitized economy.
The study also found that as digitalisation accelerates, business owners are prioritising secure, user-friendly, and data-driven financial solutions to stay competitive in a rapidly evolving market.
AI and Digital Inclusion for Growth
As Saudi Arabia's SME sector continues to evolve, business owners are focused on leveraging innovation and expanding digital inclusion to sustain long-term growth.
Many SMEs see AI, automation and digital platforms as essential tools for streamlining operations and enhancing customer engagement.
According to the Mastercard SME Confidence Index, 72% of the SMEs surveyed have identified AI adoption as a key priority, reflecting a growing emphasis on digital transformation.
Private sector collaboration is also viewed as a key driver of success, with 66% of the SMEs surveyed highlighting the importance of partnerships in gaining access to financial resources, technology and business insights.
Additionally, as businesses embrace digital transformation, 97% of the respondents believe cybersecurity and regulatory support remain top considerations for ensuring a secure and resilient commercial environment.
Aligning with Vision 2030's emphasis on economic diversification and SME empowerment, Mastercard announced in 2024 the launch of a local technology infrastructure to process e-commerce transactions efficiently, reinforcing its position as an enabler of Saudi Arabia's digital economy. Under the patronage of the Saudi Central Bank (SAMA), Mastercard Gateway continues to enhance the Kingdom's digital payments ecosystem, providing businesses with seamless, secure payment solutions to drive growth and innovation in the e-commerce sector.
Additionally, Mastercard joined forces with Saudi Awwal Bank (SAB) to introduce the SME Business credit card that enables small businesses to manage their finances efficiently while facilitating access to credit.
Earlier in February 2025, Saudi Arabia hosted the leading tech and AI platform LEAP for four days in the capital Riyadh.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Campaign ME
22 minutes ago
- Campaign ME
How MENA restaurants drive real engagement and decisions online?
Social media has become the first place to look before booking a table or placing an order. A Cropink study indicates that 72 per cent of people use social media to research restaurants, and 68 per cent check a restaurant's social media before visiting. Yes, TikTok and Reels recommendations work well here, and not only with Gen Zs. But why? Social media engagement is all about the relationships and trust that digital platforms can build, not simply about food photos. There are several benefits for restaurants that actively reply to reviews, answer enquiries, and facilitate online ordering. According to a recent study, 71 per cent of customers are more inclined to suggest a restaurant that provides easy ordering and prompt service. And here are other factors that drive real engagement in the MENA's F&B sector. The power of influencer recommendations One thing is clear: influencer marketing directly impacts people's dining decisions. For instance, 69 per cent of consumers claim that trusted online personas have an impact on their dining choices. In the Gulf, 80 per cent of GCC users visit restaurants after interacting with TikTok food content, according to the company's 'Anatomy of Appetite' promotion in Saudi Arabia. RiyadhGrub, a TikTok account devoted to Saudi Arabia's culinary sector, is one notable example of social media success. RiyadhGrub relies on cultural authenticity rather than the highly stylised 'influencer aesthetic'. It uses tight edits, sharp commentary, and a personable tone that appeals to Saudi youth between the ages of 18 and 34. The account has established itself as a reliable cultural translator through cuisine by showing neighbourhood restaurants, sharing their stories, and encapsulating the distinct spirit of Riyadh's streets. Effective content strategies for engagement But not all content on social media is made equal. Understanding which formats work best for MENA restaurants can create or break customer engagement. Variety is essential here. The research indicates that videos (26 per cent) and written articles (27 per cent) are two of the most engaging content formats. Instagram and TikTok dominate the visual landscape, so producing short-form videos and taking Pinterest-like photos are key. From chef interviews and brief dish demonstrations to behind-the-scenes kitchen scenes, visually storytelling encourages clicks, comments, and, above all, table reservations. Work local Working with local influencers is another strategy F&B venues could use, not only for exposure but also for credibility. For instance, restaurants can reach devoted fan audiences that already trust these voices by working with well-known food bloggers in Dubai or Jeddah. Venues can also reach extremely segmented audiences through targeted social media advertising. Serving the appropriate ad to the right customer at the right time is where MENA restaurants see a higher ROI, whether they are advertising a new brunch menu to millennials or promoting a seafood night to residents of coastal cities. Short, genuine content, particularly that which showcases employees' personalities, regional ingredients, or special offers, performs noticeably better than postings that are too polished or generic. A nicely planned food shot doesn't pique the interest of many places as much as sharing uncut kitchen footage from prep time. What's next for restaurants in MENA? AI is already changing how restaurants interact with their audience. The next big step for MENA restaurants is to integrate AI further into their operations and marketing strategies. For example, restaurants may adjust their menus, posting schedules, and promotional efforts by using predictive algorithms, which can forecast consumer behaviour. The most booming eateries in the MENA are those that view social media as an integral component of their brand experience. They invest in tools that make people's dining experience, tell stories, and modify their content formats according to what makes people click. And this goes beyond a clickbait hook or a title. By Alexander Ponomarev, CEO of Syrve MENA, Dubai-based all-in-one POS andrestaurant management solutions provider.
Zawya
an hour ago
- Zawya
PIF reports 19% growth in assets under management, $171bln invested in priority sectors since 2021
RIYADH — The Public Investment Fund (PIF) has reported a strong performance for 2024, with assets under management (AuM) rising 19% to $913 billion and total revenue increasing by 25%, according to its newly published annual report. The results highlight PIF's expanding role in driving Saudi Arabia's economic transformation and shaping global markets. Since 2021, cumulative investments in priority sectors have exceeded $171 billion, with $56.8 billion deployed in 2024 alone. The fund's average total portfolio return has reached 7.2% annually since 2017, and its cash position remains broadly unchanged, reflecting robust liquidity. PIF's contribution to the Kingdom's non-oil GDP between 2021 and 2024 totaled $243 billion, representing 10% of the national non-oil economy. The fund has established 103 companies to date, bringing its total portfolio to 225 companies by the end of 2024, while advancing strategic sectors, localization, and innovation. Key milestones in 2024 included partnerships in sports, technology, energy, and entertainment — such as launching Alat, a technology firm focused on semiconductors and smart devices; creating the Neo Space Group to champion the satellite and space sector; and entering multi-year agreements with ATP and WTA to boost global tennis. PIF also acquired a 15% stake in Heathrow Airport and launched Adeera, a Saudi hospitality brand. Internationally, PIF continued to expand its global investment footprint, raising $16.83 billion in public and private debt while earning credit rating upgrades from Moody's and Fitch. Governance performance also reached a milestone, with PIF scoring 96% in Global SWF's 2024 GSR Scoreboard and tying for first place globally in 2025 with a score of 100%. PIF also recorded strong brand growth, with Brand Finance naming it the world's most valuable and fastest-growing sovereign wealth fund brand in 2024. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
3 hours ago
- Zawya
PIF continued to drive the economic transformation of Saudi Arabia while shaping global economies in 2024, growing AuM by 19%
Cumulative investments in priority sectors have exceeded $171 billion since 2021 RIYADH – PIF today published its 2024 Annual Report showing strong performance and continuous delivery on its unique mandate to drive Saudi Arabia's economic transformation and generate sustainable financial returns. PIF's assets under management (AuM) increased by 19% to $913 billion as of year-end 2024, with an annual average total portfolio return of 7.2% since 2017. Total revenue increased by 25%, and cash balance remains strong and broadly unchanged year on year as PIF maintains its robust liquidity. The report demonstrates significant progress against PIF's forward-looking investment strategy, reinforcing PIF's position as one of the world's largest and fastest-growing sovereign wealth funds (SWFs). PIF's cumulative real non-oil GDP contribution between 2021 and 2024 grew to $243 billion. PIF's portfolio reflects its focus on diversifying the Saudi economy as well as its commitment to global commercial partnerships. Yasir A. AlSalman, PIF's Chief Financial Officer, said: 'The annual report for 2024 is marked by significant growth underpinned by solid financial health, as PIF further established its position as one of the world's largest sovereign wealth funds. PIF's portfolio delivered year-on-year growth of assets under management of 19% to reach $913 billion. Capital deployment across priority sectors reached $56.8 billion in 2024, bringing cumulative investment since the beginning of 2021 to more than $171 billion. PIF continues to innovate to deliver on its mandate and drive economic transformation.' Maram Al Johani, PIF's Acting Chief of Staff and Secretary General to the Board, said: 'Throughout 2024, PIF continued to lead with long-term vision and purpose. PIF deepened its impact and continued to drive the economic transformation of Saudi Arabia, while generating sustainable returns. PIF now represents 10% of the nation's non-oil economy, with PIF's cumulative real non-oil GDP contribution between 2021 and 2024 growing to $243 billion. 'PIF's portfolio reflects its focus on diversifying the Saudi economy, PIF continued to invest in and establish new companies, driving forward change and bringing the total number of portfolio companies at year-end to 225 of which PIF has created and established 103. PIF continued to drive development of strategic economic sectors in Saudi Arabia, through national champions, expanding the technical capabilities of PIF's investment portfolios, promoting localization, and stimulating innovation. 'The 2024 results highlight PIF's transition from digital transformation to digital leadership, with artificial intelligence and automation together becoming a vital part of operations. In 2024, PIF completed 58 digital projects, launched 15 new applications and automated more than 477 processes, enabling insights, strategy and the creation of economic value.' Building Global Presence and Partnerships PIF's international investment pool continued to expand during 2024, leveraging long-term, high-impact capital to generate sustainable returns while building partnerships across key international markets. PIF's global investments serve strategic objectives by growing and diversifying PIF's assets and returns, forming strategic partnerships with innovative companies, investment managers and influential investors, and investing in cutting-edge technology that is shaping the future global economy. Diverse Funding Sources Over 2024, PIF continued to diversify funding sources, raising $9.83 billion in public debt and an additional $7 billion in private debt. PIF's strength and stability were recognized internationally in 2024. Moody's upgraded PIF to Aa3 from A1, with stable outlook, and Fitch affirmed PIF's rating at A+, with stable outlook, both validating PIF's robust credit profile. Global Governance Best Practice PIF reached a major milestone in governance, sustainability and resilience (GSR) performance, achieving a 96% score on Global SWF's 2024 GSR Scoreboard. In 2025, PIF tied for first place globally among 200 sovereign investors, with a score of 100%. Global Brand Strength A study by Brand Finance, the world's leading independent brand valuation company, found PIF to have the most valuable and fastest-growing brand in the world among all SWFs, with an A+ rating. -Ends- About PIF PIF is the investment engine driving economic transformation for Saudi Arabia and the world. With an ambitious program to deliver Vision 2030, PIF invests in projects, companies and partners to diversify the Saudi economy, stimulate growth in every major sector, and create new opportunities for investment and employment. And as a global investor and catalyst of change, PIF actively partners with the most pioneering organizations across the world to accelerate their growth, and transfer the technology and knowledge needed to build industry ecosystems of the future. Since 2017, PIF has established 103 companies and is driving the transition to a more sustainable economy through strategic investments and partnerships across the Saudi public and private sector. PIF is laying the foundations for local and international partners to invest in the economic and societal transformation of Saudi Arabia. For more information, visit the website at Rupert Trefgarne: rtrefgarne@ +966 546 0057 33 PIF 2024 highlights include: January: PIF unveiled Electric 360, a multi-year partnership with Formula E, Extreme E (now Extreme H) and E1 to support the growth of electric motor sports and their role in advancing the future of electric mobility. February: PIF announced the launch of Alat, a PIF-owned company focused on advanced technology sectors, including semiconductors, smart devices and industrial automation. February: PIF and ATP unveiled a new multi-year strategic partnership, marking a significant shared commitment to enhancing global tennis for players, fans, tournament organizers and stakeholders at all levels of the sport. April: PIF and BlackRock agreed to establish a Riyadh-based multi-asset investment management platform to accelerate capital market development in Saudi Arabia. May: PIF and WTA unveiled a multi-year partnership to grow women's professional tennis and inspire more women and girls around the world to take up the game. May: PIF announced the establishment of the Neo Space Group, a wholly owned PIF company that will become a national champion in the satellite and space sector. July: PIF announced three new joint ventures to localize in Saudi Arabia the manufacturing and assembly of equipment and components needed for solar and wind power. August: PIF and the regional soccer body Concacaf announced a partnership to further elevate the game in North America, Central America and the Caribbean. September: PIF launched National Interactive Entertainment Company to deliver immersive, storytelling-based exhibitions focused on Saudi heritage, culture and history. November: PIF announced the sale of 100 million shares in stc group, the Saudi telecoms company. December: PIF launched Adeera to create homegrown Saudi hospitality brands and manage hotels ranging from midscale to luxury across Saudi Arabia. December: PIF acquired a 15% stake in FGP TopCo, the holding company of London's Heathrow Airport, one of the world's premier aviation hubs.
