Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Gulf SME boom forecast as new wave of entrepreneurs emerge post-coronavirus

Gulf SME boom forecast as new wave of entrepreneurs emerge post-coronavirus

Experts say commercial registrations in the region have seen triple-digit increases in recent months

Experts are predicting a GCC ‘SME boom’ as a new wave of regional entrepreneurs emerge out of the coronavirus pandemic.

Commercial registrations have seen triple-digit increases in recent months with tender boards across the region awarding tens of millions of dollars in contracts to enterprises.


Analysts are now hailing the post-coronavirus economy as an “era of start-up growth” as governments focus on rebuilding their economies following months of reduced activity during the pandemic.

Pakiza Abdulrahman, manager of business development - start-up at Bahrain's Economic Development Board, said: “Across the region, governments are putting start-ups and SMEs front and centre as they seek to regrow and diversify their economies, and this new era of start-up growth is only set to increase post-Covid.

“Unprecedented, targeted support packages are indicative of governments prioritising small business as being the engine of the Gulf’s post-lockdown recovery, and we are already seeing the results of this SME boom.

“In Bahrain, SMEs have proven to be a key pillar in the economic diversification strategy, and also play a major role in job creation and have emerged as an increasingly significant contributor to national GDP.”

The comments come as the Bahrain government announced plans to subsidise electricity bills for SMEs to the tune of BHD24 million ($63.7m) to help bolster national economic growth.

In August, the Bahrain Tender Board announced that in the first half of the year it had awarded 47 public tenders worth a combined $21.8m to SMEs in the kingdom, following a Cabinet decision to boost public spending in the sector.

This comes against a backdrop of already soaring numbers of individual commercial registrations in Bahrain – up by 109 percent in June alone.

The Bahrain boom is closely reflected across the region, with 99 percent of businesses in Saudi Arabia a part of the SME segment providing 64 percent of total employment in the country.

Under Saudi Vision 2030, the kingdom plans to raise the contribution of SMEs from the current 20 percent of GDP to 35 percent by facilitating their access to funding and encouraging financial institutions to allocate up to 20 percent of overall loans to them.

As of last year, the UAE’s Ministry of Economy estimated that the SME sector represents more than 98 percent of the total number of companies operating in the UAE and contributes towards 52 percent of non-oil GDP – a figure the ministry wants to increase to 60 percent by 2021.


Areije Al Shakar, fund director at Al Waha Fund of Funds


Areije Al Shakar, fund director at Al Waha Fund of Funds, the government fund established in Bahrain to catalyse the growth of a VC community across the region, added: “In light of the global pandemic, governments are doubling down on their support for what was already a priority segment for most major GCC economies – and for a good reason.

“Despite startup funding globally dropping to an all-time low in the first half of this year, the MENA region saw a record breaking $659m raised during that period – already at 95 percent of total venture investments in 2019, itself a record-breaking year. A renewed government focus on the sector will drive growth even further.”

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×