Number of SMEs Jumps 68% in Saudi Arabia

Entertainment is one of the sectors that helped increase the entry of small and medium enterprises into the Saudi market. (Asharq Al-Awsat)
Entertainment is one of the sectors that helped increase the entry of small and medium enterprises into the Saudi market. (Asharq Al-Awsat)
TT

Number of SMEs Jumps 68% in Saudi Arabia

Entertainment is one of the sectors that helped increase the entry of small and medium enterprises into the Saudi market. (Asharq Al-Awsat)
Entertainment is one of the sectors that helped increase the entry of small and medium enterprises into the Saudi market. (Asharq Al-Awsat)

The number of small and medium enterprises (SMEs) in Saudi Arabia increased by about 68 percent, reaching 752,500 during Q1 of 2022, in light of the incentives provided by Vision 2030.

A recent report by the Digital Transformation Program, a copy of which was reviewed by Asharq Al-Awsat, showed that SMEs constitute 99.5 percent of the total companies in the Kingdom.

The Kingdom supports this sector and paves the way for entrepreneurs to increase the contribution to the gross domestic product to 35 percent within the goals of Vision 2030.

According to the report, Vision 2030 helped increase the rate of entry of SMEs into the local market, most notably the establishment of the Small and Medium Enterprises General Authority (Monshaat).

The Authority aims to regulate, support, develop, and sponsor the SME sector in the Kingdom, following global best practices to increase their contribution to GDP.

It launched the Support Center, among the tools that helped raise the sector’s share in the Saudi market.

The Center includes integrated unified units that provide programs to develop enterprises and entrepreneurs, including consultations, presentations to investors, training, development services, and guidance.

It also links SMEs with large enterprises in the same economic zone.

The Saudi government will launch an ambitious program affiliated with Monshaat with an integrated system that supports fast-growing enterprises to promote and advance their growth by linking them with service providers and supporting public and private agencies.

The National Transformation Program (NTP) report stated that one of the most prominent efforts to support the sector is the launch of the Small and Medium Enterprises Bank, as one of the funds and development banks to increase financial loans, enhance the contributions of financial institutions in providing innovative financing solutions, and achieve financial stability.

The sector’s incentives include legislative development, such as the franchise system, which encourages the sector’s activities by setting a regulatory framework that sets policies for the relationship between the franchisor and the grantor.

It determines the foundations for this relationship based on the principle of transparency, which facilitates the procedures for introducing trademarks into the global market in Saudi Arabia.

The report indicated that one of the most important efforts that helped grow small and medium enterprises is e-commerce, which aims to boost confidence in e-transactions, protect consumer rights, and stimulate and develop the sector.

Monshaat revealed in its report for the first quarter of this year that the number of micro, small, and medium enterprises reached about 752,500 establishments, achieving a 15 percent increase compared to the same period in 2021.

The report focused on the most important event in the Kingdom during the first quarter, represented by the organization of the Global Entrepreneurship Congress in Riyadh, held in March, with over 9,300 attendees from 180 countries.

The Congress recorded a high level of agreements and investments amounting to $13.8 billion and more than ten financing rounds for Saudi startups.

The report reviewed the developments in the culture, entertainment, and sports sectors, noting that SMEs achieve an average annual revenue of $640,000, compared to the average revenue earned by emerging sectors of $800,000.

The report disclosed that SMEs received financing facilities amounting to $17.2 billion through the Kafala program launched by Monshaat, which guarantees bank loans to small and medium enterprises.



Al-Moammar Receives First Work Order Under HUMAIN Agreement, Worth More Than 148% of 2025 Revenue

A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).
A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).
TT

Al-Moammar Receives First Work Order Under HUMAIN Agreement, Worth More Than 148% of 2025 Revenue

A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).
A sign identifying Al-Moammar Information Systems Company in Riyadh (company website).

Al-Moammar Information Systems Company (MIS) has received its first work order under its agreement with HUMAIN, with a total value exceeding 148 percent of the company's total revenue for 2025, including value-added tax.

In a statement on Saudi Exchange on Sunday, the company said Work Order No. 1, received on October 1, covers the scope of work related to a capacity of 50 megawatts. This was the scope previously announced as part of a project to design and build data centers dedicated to artificial intelligence technologies.

The company said the financial impact of the work order began in the second quarter of fiscal year 2026.

The work order was received under an agreement signed by Al-Moammar Information Systems with HUMAIN last September, with a value exceeding 689 percent of the company's total revenue for 2025, including value-added tax. The agreement includes an expansion of the project's scope from 50 megawatts to 250 megawatts.

When the agreement was announced, the company said the engineering, procurement, and construction works would be carried out through work orders issued by HUMAIN in accordance with the terms of the agreement. The company would announce each work order upon receipt, including its value, implementation period, and financial impact.

Al-Moammar Information Systems expects to receive additional work orders related to the further expansion of the project in the coming period and will announce any material developments in this regard when they occur.


OPEC+ Agrees to Keep November Oil Output Targets Steady

FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
TT

OPEC+ Agrees to Keep November Oil Output Targets Steady

FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo

OPEC+ agreed to keep oil production targets steady for November at a meeting on Sunday, the producer group said, in line with expectations that further output policy adjustments are unlikely until next year.

Seven core members of the group comprising the Organization of the Petroleum Exporting Countries and allies including Russia made the decision for November in a brief online meeting on Sunday. The core members are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

Oil prices had dropped on Friday after European leaders agreed to US President Donald Trump's request to release diesel reserves. Even so, Brent crude remains above $100 a barrel, up from about $73 before the Iran war started in late February.

The Iran war has also delayed the group's output capacity review — crucial to determine members’ 2027 output quotas — because it has thrown estimates of future production potential into uncertainty, industry sources told Reuters last week.

OPEC+ has been raising output targets for much of 2026 after years of production cuts, but most of the increases stayed on paper because of the Middle East conflict.

The seven core OPEC+ members pumped 25 million barrels per day in August, up 630,000 bpd from July, yet still roughly 5 million bpd below prewar levels in February, OPEC data shows.

The seven hold their next meeting on November 1.

OPEC+ still has about 2 million bpd of output cuts in place covering most members. It needs the result of the capacity review to decide how to distribute increases and any changes to output are unlikely before 2027, sources have said.

A separate OPEC+ ministerial group called the Joint Ministerial Monitoring Committee (JMMC), which does not decide policy, also met on Sunday to review the market.


Saudi Arabia Announces Results of Natural Gas Distribution Licensing Competition in Al-Kharj

A worker at one of Saudi Aramco's gas facilities.
A worker at one of Saudi Aramco's gas facilities.
TT

Saudi Arabia Announces Results of Natural Gas Distribution Licensing Competition in Al-Kharj

A worker at one of Saudi Aramco's gas facilities.
A worker at one of Saudi Aramco's gas facilities.

The Ministry of Energy today announced the results of a competition for a license to establish, own, and operate a natural gas distribution network in the industrial city of Al-Kharj in central Saudi Arabia.

The ministry had previously invited interested investors to participate in the competition to obtain the license and completed the procedures for qualifying bidders, launching the competition, and evaluating the bids.

As part of the competition, Natural Gas Distribution Company was awarded a license to establish, own, and operate the distribution network in the industrial city of Al-Kharj.

The competition will contribute to the objectives of the Liquid Fuel Displacement Program and the replacement of liquid fuels with natural gas, with the aim of maximizing the economic, environmental, and social benefits that the Kingdom derives from its petroleum resources as part of Vision 2030.

The launch of the competition is part of the ministry's efforts to strengthen the natural gas sector's infrastructure and stimulate investment in the sector by creating an attractive competitive environment that enables beneficiaries to access natural gas and improves the quality of services provided.