#10XData: SMEs employ 1 million Saudis

In most countries, SMEs contribute to a major chunk of the economy as they create more jobs and employ thousands of residents. In the UAE, SMEs contribute 53 percent of the country’s GDP.

In Saudi Arabia, there are 950,000 SMEs registered for business purposes, as cited in a new research note from Jadwa Investment. Recent data from the General Authority for Statistics in the Kingdom of Saudi Arabia suggests that SMEs currently employ over 1 million Saudi nationals and 3.7 million foreigners.

The figures also showed that the average monthly salary for Saudi nationals working in SMEs was SR 6,600 per month, while those working in larger corporates earned SR 9,900 per month. SMEs working in the finance and insurance sector hired the largest share of Saudi nations, accounting to 61 percent, followed by real estate that accounted for 48 percent.

This comes in line with a key objective of Saudi Vision 2030, which is to support SMEs to significantly raise the level to which they contribute to the country’s GDP, which currently stands at 20 percent. The Vision aims to increase it to 35 percent by 2030.

Read more about SME contribution to Saudi’s economy here.