83% of small and medium enterprises (SMEs) in Saudi Arabia are optimistic about the next 12 months, according to the latest research by Mastercard in a new report released by the company.
The figure is slightly higher than the average for the rest of the Middle East and North Africa region at 81%, according to the study.
As many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease after the global pandemic, small and medium-sized businesses in MENA “have identified better data and insights (42%), easier access to credit (41%), and upskilling staff (40%), as the top three drivers for growth. This highlights the opportunities for small businesses that arise from both internal transformation as well as industry regulations and trends,” Mastercard said.
“Small and medium sized businesses are vital to the Saudi economy as it diversifies and grows. Through the most difficult days of the pandemic, SMEs continued to press ahead, and it is encouraging to see the renewed optimism and confidence in this sector today. Mastercard stands ready to continue supporting and growing with these key drivers of the economy. As Saudi Arabia continues to transform the way it does business, providing opportunities for millions of workers and their families, Mastercard is delivering simple, secure, and innovative payment solutions that are driving commerce today,” said J. K. Khalil, Country Manager for Saudi Arabia, Bahrain & Levant for Mastercard.
Mastercard works closely with government, financial organizations, and the wider business community to create opportunities for SMEs across the region.
When asked about the main thing that keeps them up at night, 48% of SMEs in Saudi Arabia mentioned the challenge to maintain and grow their business was their top issue. Looking at concerns over the next 12 months, almost half (49%) identified the rising cost of doing business, while 41% cited red tape and regulations. Private sector partnerships (62%) and government-led initiatives (55%) were identified as having the biggest potential to positively impact SMEs and the wider KSA market, according to the report.
