Riyadh – Mubasher: A recent study showed that 83% of the small and medium-sized enterprises (SMEs) in Saudi Arabia are optimistic about future growth in the coming 12 months, backed by potential for digitalisation, access to better data, in addition to training and upskilling.
This percentage was compared to a regional average of 81%, according to the inaugural Mastercard Middle East and Africa (MEA) SME Confidence Index.
The study added that 83% of the Saudi SMEs projected revenues to either grow or hold steady, while 50% expected an increase.
Saudi Vision 2030 aims to increase SMEs’ contribution to the gross domestic product (GDP) to 35%.
As for the concerns over the next 12 months, about 49% of the SMEs said the rising cost of doing business, while 41% cited red tape and regulations.
Meanwhile, private sector partnerships and government-led initiatives were identified as having the biggest potential to positively impact SMEs and the wider KSA market, Mastercard said.
During the 2016-2018 period, the SMEs’ contribution to the GDP rose from 20% to 29%.
