Saudi MSME Loans Jump 27.6% in 2024 to Reach $93.8 Billion

According to the Saudi Central Bank (SAMA), credit extended to micro, small, and medium enterprises (MSMEs) in Saudi Arabia grew by 27.62% year-on-year in 2024, totaling SR 351.7 billion (USD 93.8 billion). The majority of this financing—94.82%—was provided by Saudi banks, with finance companies contributing 5.18%.

Medium-sized enterprises received the largest share of the funding at SR 187.21 billion, or 53.23% of the total. Small enterprises accounted for 34.74%, receiving SR 122.17 billion, while micro enterprises received SR 42.32 billion—a 70% year-on-year increase—despite representing a smaller portion of overall lending.

MSME loans made up 9.4% of banks' total credit portfolios and 18.9% of finance companies' lending, reflecting continued progress toward Saudi Arabia’s Vision 2030 target of allocating 20% of bank credit to the sector.

Government-backed initiatives have played a role in expanding credit access. The Kafalah program, overseen by the Saudi Authority for Small and Medium Enterprises ‘Monsha’at’, guarantees up to 80% of loans to eligible MSMEs, reducing risk for lenders. The SME Bank, a specialized financial institution in Saudi that focuses on providing financing and support to small and medium-sized businesses, also supports underserved segments through alternative financing, such as debt-based crowdfunding. In 2024, it allocated SR 240 million through partnerships with fintech platforms Manafa, Lendo, and Tameed to provide short-term financing.

Saudi Arabia also recorded a 67% quarter-on-quarter rise in new business registrations in Q4 2024, with over 160,000 new commercial licenses issued. This brought the total number of registered enterprises in the country to more than 1.6 million. E-commerce businesses saw a 10% increase, reaching 40,953. Riyadh province led with 39% of new registrations, followed by Makkah (17%) and the Eastern Province (16%).