Saudi Arabia’s MSME finance ecosystem at the heart of economic diversification and financial inclusion efforts
Saudi Arabia, February 2025: The pivotal role of Saudi Arabia’s finance ecosystem for micro, small, and medium-sized enterprises (MSMEs) in advancing the Kingdom’s economic diversification and financial inclusion objectives is explored in a new report released by Oxford Business Group (OBG), in collaboration with the Kafalah programme.
Titled, “MSME Empowerment in Saudi Arabia,” the report examines the country’s strategic efforts to drive the growth of MSMEs by improving access to finance and fostering entrepreneurship. It highlights how the Kingdom is leveraging tailored financial solutions to support the expansion of MSMEs, with a focus on high-potential sectors such as technology, tourism, culture and entertainment.
In particular, the report highlights the work of the Kafalah programme in expanding loan guarantees, enabling MSMEs to overcome financial barriers and drive private sector employment. It explores Kafalah’s products that are tailored to support high-potential sectors, thereby boosting economic diversification and resilience.
MSMEs are at the forefront of Saudi Arabia’s economic transformation, contributing significantly to job creation, GDP growth and innovation. The report outlines how the Kingdom is empowering small businesses to unlock opportunities in emerging sectors. This focus on financial inclusion and business growth is enhancing Saudi Arabia’s economic resilience and establishing the Kingdom as a dynamic and competitive global economy.
Looking ahead, the report explores how Kafalah’s innovative financing solutions, forward-looking initiatives, and focus on digital transformation should further fuel MSME expansion in the domestic market and help emerging businesses to capitalise on opportunities for foreign trade.
Commenting on the findings, Busra Karacadag, Country Director for Saudi Arabia at Oxford Business Group, noted the vital role of MSMEs in the Kingdom’s transformation.
“This report sheds light on the crucial role that the MSME finance ecosystem is playing in driving economic diversification and job creation in Saudi Arabia. By developing financial tools and services that meet the specific needs of small businesses, the country is fostering a more dynamic, inclusive economy in line with Vision 2030,” Karacadag said.
Homam Hashem, Kafalah’s CEO, highlighted the opportunities for MSMEs in Saudi Arabia’s rapidly evolving economy.
“As the economy diversifies under Vision 2030, MSMEs can gain access to new markets and investment opportunities. Additionally, the focus on digital transformation helps MSMEs to adopt new technologies and improve their competitiveness, positioning them well for future economic shifts,” Hashem said.
The “MSME Empowerment in Saudi Arabia” report provides a comprehensive overview of the country’s efforts to create a conducive environment for MSME growth, ensuring that emerging businesses are well-positioned to contribute to the Kingdom’s future economic success.
The special report is now available to view and download at: https://oxfordbusinessgroup.com/reports/report-how-is-saudi-arabia-boosting-economic-diversification-through-msme-empowerment-focus-report/
About Oxford Business Group
Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, spanning Africa, the Middle East, Asia, and the Americas. It is recognised internationally as a distinctive and respected provider of on-the-ground intelligence on world’s fastest-growing markets, termed The Yellow Slice, in reference to OBG’s corporate colour.
Through its range of products – Economic News and Views; OBG CEO Surveys; OBG Events and Conferences; Global Platform, which hosts exclusive video interviews; and The Report publications – as well as its Advisory division, OBG offers comprehensive and accurate analysis of macroeconomic and sector-level developments for sound investment opportunities and business decisions.
OBG provides business intelligence to its subscribers through multiple platforms, including its direct subscribers, Dow Jones Factiva subscribers, the Bloomberg Professional Services subscribers, Refinitiv’s (previously Thomson Reuters) Eikon subscribers, and more.
