Saudi Arabia's Commercial Records Surpass 1.7 Million As Education Investment Opportunities Exceed SAR50 Billion

The Small and Medium Enterprises General Authority (Monsha'at) SME Monitor report reveals that over 80,000 new commercial records were issued in the second quarter of 2025. This brings the total number of commercial records in Saudi Arabia to 1.7 million. The report highlights key developments and initiatives within the SME sector, with a focus on the education sector as a promising investment area.

Riyadh Region led with 28,181 new records, accounting for 35.2% of the total. Makkah followed with 14,498 records (18.1%), while the Eastern Region had over 12,985 records (16.2%). Qassim recorded 4,920 (6.2%), and other regions combined accounted for 19,416 records (24.3%). E-commerce saw significant growth with 39,366 new records.

Minister of Education Yousef Al-Benyan opened the report by highlighting investment opportunities in education, estimated at more than SAR50 billion by 2030. He noted that SMEs make up about 98% of educational establishments, underscoring their importance in this sector. Women's ownership of educational establishments reached 39.4%, showcasing their increasing leadership roles.

The report also provided updates on Monsha’at’s SME enablement programs. During the second quarter of 2025, the Tomoh Program benefited 3,175 SMEs, many of which were subsequently listed on the parallel market (Nomu). These programs continue to invigorate the broader ecosystem.

The venture capital system's performance was highlighted for its impressive growth during the first half of 2025. Saudi startups secured SAR3.225 billion through 114 deals, marking a 116% annual increase in capital value and a 31% rise in deal numbers. This represents 56% of total venture capital investment in MENA.

The Kafalah Program has been pivotal since its launch in 2006 to support SMEs and entrepreneurs financially. By mid-2025, it had reached SAR121 billion in total products and initiatives, providing guarantees worth over SAR86.8 billion to benefit 26,095 establishments through various financing programs.

Riyadh plays a crucial role as an economic hub, contributing around half of Saudi Arabia's non-oil GDP. The city has attracted more than 600 international companies to set up regional headquarters there through strategic programs aimed at boosting economic activity.

The Kingdom's private sector continues to show strong performance indicators due to non-oil investments and sustained economic growth. Monsha'at initiatives like Monsha'at Academy and innovation centers have significantly supported tens of thousands of entrepreneurs across various sectors.

The SME Monitor report is part of Monsha'at's quarterly series aimed at providing accurate data on entrepreneurship trends and future prospects in Saudi Arabia. It serves as a valuable resource for decision-makers, investors, and entrepreneurs seeking insights into the Kingdom's dynamic business environment.

With inputs from SPA