Saudi Arabia granted over SR275 billion as credit facilities to enterprises in 6 years
Growth of 154% or SR167.1 billion, over 2018 when the figure stood at SR108.519 billion
Riyadh: The banking and finance sectors granted, in six years, till the end of 2023, SR275.576 billion worth of credit facilities to small, medium, and micro enterprises.
This represents a 154 per cent growth, or SR167.1 billion, over 2018 when the figure stood at SR108.519 billion.
On an annual level, the facilities provided grew by 20.3 per cent to an estimated value of SR46.544 billion by the end of 2022, compared to SR229.032 billion.
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According to the monthly statistical bulletin issued by the Saudi Central Bank for March 2024, medium-size enterprises accounted for the largest share of the total facilities, at 57.5 per cent, or SR158.411 billion. Then came small enterprises, at 33.5 per cent or SR92.275 billion, and micro enterprises, at 9 per cent or SR24.890 billion.
The banking sector contributed the largest share of the total facilities provided, at 94 per cent, or SR258.295 billion. Finance companies contributed SR17.281 billion, accounting for some 6 per cent.
Quarterly data for the credit facilities provided by the banking and finance sectors to these enterprises also show a 3 per cent growth by Q4-2023, an increase of about SR7 billion over the SR268.574 billion in Q3-2023.
The Small and Medium Enterprises General Authority classifies medium-size enterprises as having revenues of SR40 to SR200 million and 50 to 249 employees. Small-size enterprises have revenues of SR3 to SR40 million and six to 49 employees, while micro establishments have revenues of up to SR3 million or one to five employees.