Saudi Arabia’s entrepreneurship ecosystem continued to expand in 2025, supported by a combination of regulatory reforms, financing initiatives, digital adoption, and programmes aimed at developing small businesses and start-ups. Together, these eorts contributed to a growing role for small and medium-sized enterprises (SMEs) within the kingdom’s economy and broader Vision 2030 objectives.

According to the National Transformation Program (NTP) Annual Report 2025, the number of SMEs in Saudi Arabia exceeded 1.7 million in 2025, compared with approximately 429,000 in 2016 – a quadruple rise in just under a decade. The growth reflects years of policy eorts designed to encourage entrepreneurship, improve access to finance, and create a more supportive business environment for emerging enterprises.

A key part of this eort has been the work of the Small and Medium Enterprises General Authority (Monsha’at), which, in collaboration with the National Transformation Program, has launched initiatives to strengthen entrepreneurial capabilities and support business formation.  

During 2025, entrepreneurship development programmes conducted across six universities helped enhance students’ entrepreneurial skills and supported the development of 300 minimum viable products (MVPs). Additional programmes supported 60 commercial brands through franchising tours across the kingdom and assisted 50 local brands in adopting and expanding under franchise business models.

The expansion of entrepreneurship is also evident in Saudi Arabia’s commerce sector. According to the Saudi Vision 2030 Annual Report, active commercial registrations surpassed 1.8 million in 2025, including 259,000 new registrations and more than 13,000 foreign company entries. The private sector’s contribution to GDP reached 51%, while SMEs accounted for 22.9% of economic output.

The Saudi Business Center further increased access to government services by processing more than 10 million transactions, oering 189 electronic services through its digital platform, and converting hundreds of licences to instant issuance status.

PRODUCTIVE FAMILIES

These gains have been supported by reforms aimed at improving the country’s business environment. Saudi Arabia ranked 17th globally in the 2025 IMD World Competitiveness Yearbook, following more than 1,000 economic, procedural, and technological reforms implemented through the Saudi Competitiveness Center and partner government entities. 

Alongside formal SMEs, Saudi Arabia has also sought to support micro-enterprises through its Productive Families initiative. The programme focuses on households that use their skills, crafts, and resources to operate small-scale businesses. Supported by initiatives from the National Transformation Program and the Social Development Bank, the sector has become an increasingly important contributor to local economic activity.

In 2025, sales generated by productive families exceeded USD 6 billion, while the number of beneficiaries surpassed 151,000. The programme has provided opportunities for individuals and households to participate in economic activity, particularly in areas such as handicrafts, food production, home-based services, and small retail operations.

CATCHING UP WITH AI

As entrepreneurship activity expands, digital technologies are becoming increasingly important to how businesses operate. The shift is reflected in rising demand for artificial intelligence (AI)-related business activity. According to government data, registrations linked to AI increased by 34% in 2025, reaching more than 19,000. At the same time, entrepreneurs are increasingly exploring how AI tools can support customer acquisition, marketing, product development, sales, and operational efficiency.

To help address growing interest in AI adoption, several organisations launched practical training initiatives focused on real-world business applications. In Riyadh, the United Nations Conference on Trade and Development (UNCTAD), through its Empretec entrepreneurship programme, partnered with the Social Development Bank and Empretec Saudi Arabia to deliver AI-focused training courses for entrepreneurs. 

Rather than focusing solely on technical concepts, the courses were designed to help participants understand how AI can be integrated into day-to-day business operations. Additional training was delivered through the National Industrial Development and Logistics Program’s 1K Mile bootcamp, which supports early-stage entrepreneurs operating in sectors such as energy, mining, industry, and logistics.

Earlier this year, Monsha’at, in partnership with RSport Holding, launched a Sports Innovation Incubator as part of ongoing eorts to support entrepreneurship and innovation within the kingdom’s sports sector. The incubator will focus on sports-related projects and technologies through a 24-week programme that provides participants with access to co-working spaces, training workshops, mentorship, and advisory services. Entrepreneurs will also have opportunities to engage with industry stakeholders, enabling entities, and potential investors.

In addition, specialised tracks will focus on sports technology and investment solutions, reflecting growing interest in areas such as digital platforms, performance analytics, fan engagement tools, and other technology-enabled services. These areas are expected to play an increasingly important role in the evolution of Saudi’s sports ecosystem.