TREMENDOUS GROWTH IN GDP BY SAUDI SME’s IN 5 YEARS - MENA startups, innovation, and tech news

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TREMENDOUS GROWTH IN GDP BY SAUDI SME’s IN 5 YEARS
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TREMENDOUS GROWTH IN GDP BY SAUDI SME’s IN 5 YEARS

Small and Medium-sized Enterprises (SMEs) are widely acknowledged to play a vital role in supporting economic development and growth.The contribution of the SMEs to the Saudi gross domestic product (GDP) has surged 45% since Vision 2030 was launched.

Saudi Vision 2030 is a strategic framework that hasbeen established to reduce Saudi Arabia‘s dependence on oil by exploring the ambition and the potential of the people. A vibrant society, a thriving economy, and an ambitious nation –these are the three primary themes of the program.

In Saudi Arabia 99% of private sector companies are SMEs. Their actual goal was to raise the contribution to 35% of GDP by 2030. But during its journey from 2016 to 2018, its contribution has increased from 20 to 29%. The number of SMEs under the Vision also has expanded from 447,000 to 614,000 within the last five years.

Also, the SMEs’ share of bank loans rose from 2% to 8% in the 2016-2018 period, compared to a target of 11% by 2025.

 Crown Prince Mohammed bin Salman shared the achievements the Kingdom has witnessed since the Vision was launched on their website.

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