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GCC-based SMEs to surge 156% to $920bn in 5yrs - MRP

GCC-based SMEs to surge 156% to $920bn in 5yrs - MRP
The SME sector represents a proper solution for the GCC's governments to create jobs for young people

Abu Dhabi – Mubasher: MENA Research Partners (MRP) on Wednesday published a study on the Small and Medium-Sized  Enterprises (SMEs) sector in the GCC countries.

The study found that SMEs in the Gulf region have a potential to grow 156% to $920 billion in the next five years and employ 22 million people.

The SMEs in GCC states make up only 34% of the SMEs value in the Middle East and North Africa (MENA) region, which equals $360 billion annually, while SMEs sector in MENA is estimated at approximately $1 trillion per year, the report showed.

“Most of this growth is expected to come from key geographies such as the Kingdom of Saudi Arabia and the UAE, which are giving high priority to SMEs across many new regulations,” said MRP CEO  Anthony Hobeika.

“SMEs are the main engine for job creation in the GCC region. Current SME employment is estimated at around 17 million people with a potential to reach 22 million in five years, a rise of around 30%,” he added.  

The SME sector represents a proper solution for the GCC's governments to create jobs for young people on the back of the region's fast-growing population with young people account for 73% of GCC citizens, the study explained.

Banks in the rest of MENA earmark 13% of loans to SMEs, while the GCC-based banks confined themselves to just 2% of the loans, MRP stated. 

“Looking forward, governments acknowledge the role that entrepreneurs and SMEs can play in leading economic transformation, where special focus is given to high growth sectors like technology,” Hobeika concluded.