Riyadh is witnessing a remarkable surge in business activity, with Saudi Arabia’s commercial registrations surpassing the 1.7 million mark, according to the latest SME Monitor report from the Small and Medium Enterprises General Authority (Monsha’at).
The second quarter of 2025 alone saw over 80,000 new registrations, signaling sustained momentum in the Kingdom’s entrepreneurship ecosystem. The report shines a spotlight on initiatives supporting SMEs and identifies the education sector as a high-potential area for investors.
E-commerce continues to expand rapidly, with 39,366 new online business registrations. Youth and women are increasingly driving the entrepreneurial landscape, owning 38 percent and 47 percent of new registrations, respectively. Geographically, Riyadh leads with 28,181 new registrations (35.2 percent), followed by Makkah with 14,498 (18.1 percent), and the Eastern Province with 12,985 (16.2 percent). Other regions combined accounted for 19,416 registrations (24.3 percent).
Minister of Education Yousef Al-Benyan emphasized that investment opportunities in the education sector could exceed SR50 billion by 2030. SMEs dominate this field, comprising nearly 98 percent of educational establishments, while women now own 39.4 percent of these ventures—a reflection of their expanding influence.
Monsha’at’s programs continue to energize the SME ecosystem. The Tomoh Program supported 3,175 SMEs in Q2 2025, many of which later joined the Nomu parallel market. Financing initiatives, particularly the Kafalah Program, reached SR121 billion in products and guarantees, benefiting over 26,000 enterprises through 12 financing channels.
Venture capital activity is also booming. Saudi startups raised SR3.225 billion in the first half of 2025 across 114 deals—marking a 116 percent growth in capital value and a 31 percent increase in deal count compared with last year. The Kingdom now captures 56 percent of MENA’s total venture capital investment, with funding expected to surpass SR3.75 billion by year-end.
Riyadh’s role as an economic powerhouse is clear, contributing roughly 50 percent of the nation’s non-oil GDP and attracting more than 600 international companies through the regional headquarters program. Monsha’at’s initiatives, including the Monsha’at Academy, Mazaya Platform, and innovation centers, continue to bolster tens of thousands of entrepreneurs.
The SME Monitor report, published quarterly, provides a data-driven overview of Saudi Arabia’s entrepreneurship ecosystem, offering critical insights for investors, decision-makers, and emerging business leaders alike.
