Riyadh: The General Authority for Small and Medium Enterprises (Monsha'at) has released its SME Monitor report for the second quarter of 2024, highlighting a significant 78% increase in commercial records compared to the same period last year.

The growth was notably concentrated in Riyadh (32%), Makkah (23%), and the Eastern Region (15%).

Some 45% of new commercial records were issued to women-owned businesses, underscoring the private sector's vital role in national economic development.

By the end of Q2 2024, the number of active commercial records reached 1.5 million, of which 38% are youth-owned enterprises.

The financial technology sector also showed strong growth, with 216 active companies since the launch of the "Saudi Fintech" initiative in 2018, supported by SAR6.9 billion in venture capital investments. This has bolstered the Kingdom's position as a leading center for innovation in this rapidly evolving sector.

The report featured insights from the founder and managing director of "Tamra Financial", Salah Khashoggi, who highlighted Saudi Arabia's leadership position in global financing and the challenges faced in the fintech space. It was noted that over 100,000 participants benefited from the "Saudi Fintech" initiative, with the Kingdom aiming to establish 525 new companies to meet rising consumer demand and enhance liquidity.

Liquidity in the fintech sector reached SAR2.8 trillion by the end of May 2024, marking an 8.6% year-on-year increase. In an interview with the Lindo co-founder and CEO Osama Al-Raei, he predicted increased international and institutional funding for SMEs, driven by the robust economic environment fostered by Saudi Vision 2030.

Furthermore, Deputy CEO and Chief Investment Officer of the Saudi Venture Capital Company Nora Al-Sarhan highlighted the record venture capital financing in 2023, which makes the Kingdom the top-funded market in the Middle East and North Africa. She reported that the Saudi Venture Capital Company invested SAR3.1 billion in 49 funds during the first half of 2024, supporting over 700 startups and small enterprises.

Meanwhile, founder of Margaris Ventures, Spiros Margaris, commended the Kingdom's efforts to create a flexible regulatory environment conducive to fintech innovation. He pointed out the establishment of regulatory funds, which enables startups to experiment without facing heavy regulatory burdens.

The SME Monitor report, available at (https://www.monshaat.gov.sa/sites/default/files/2024-09/Monshaat%20Monitor%20Q2%202024%20AR.pdf), is part of a series of quarterly publications by Monsha'at that track the latest developments in the entrepreneurial landscape, offering valuable data and insights to entrepreneurs, investors, and stakeholders in the Kingdom.