Saudi Cabinet Approves New National SME Strategy

The Saudi Cabinet has approved a new National Entrepreneurship and Small and Medium Enterprises Strategy in September 2026, aiming to create more than 500,000 direct and indirect jobs and raise the SME contribution to the Kingdom's GDP to 35% by 2030.

The strategy is built around 13 initiatives designed to form an integrated framework for the sector. Its goals include improving SME access to financing and markets, strengthening operational capabilities and innovation, developing the regulatory environment, and reducing the cost of doing business. It also seeks to facilitate international expansion and exports, and to support enterprises operating in industrial cities and special economic zones.

What the strategy includes

Among its key measures, the strategy mandates the creation of a comprehensive SME database linked to relevant government and ecosystem databases to improve planning, monitoring and policy targeting. It also aims to increase SME participation in government procurement and purchases by major companies, review minimum Saudization requirements by sector, improve financial literacy for business owners, and develop financing enablers that incentivize institutions funding SMEs.

The General Authority for Small and Medium Enterprises (Monsha'at) is the primary body responsible for implementing SME and entrepreneurship policies, building a supportive ecosystem, promoting entrepreneurial culture, and enabling access to finance and markets. Its programs span the Saudi Unicorn development program, e-commerce and capability-building initiatives, SME support centers, accelerators and incubators, franchise and supplier development, and alternative financing.

By 2026, the SME contribution to GDP had reached around 28%, up from a 20% baseline and moving toward the 35% target, with SME employment exceeding earlier goals. For residents and entrepreneurs across the Kingdom, the new framework signals easier access to finance, wider market opportunities, and a growing pipeline of jobs in the years ahead.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving