Riyadh – Sharikat Mubasher: Oxford Business Group (OBG), in partnership with the Social Development Bank (SDB), has released a new report titled “The Importance of Freelancers and Startups in Saudi Arabia,” highlighting the growing role of micro and small enterprises, entrepreneurs, and freelancers in supporting the Kingdom’s economic and social transformation under Vision 2030.

The report outlines how these segments contribute to job creation, income diversification, and wider economic participation, particularly among women and youth, while also driving innovation and the growth of the digital economy. It notes that their expansion has been supported by improved regulations, a broader range of development financing programs, and non-financial support such as mentorship, incubators, and accelerators.

According to the report, Saudi Arabia is home to around 1.5 million micro, small, and medium-sized enterprises (MSMEs), which collectively contributed 28.7% of GDP in 2023, reflecting the sector’s expanding role in the national economy. Business registrations rose by 62% year-on-year, pointing to accelerating entrepreneurial activity across the Kingdom. Micro and small enterprises dominate the landscape, accounting for 87.1% of all registered businesses.

The study also highlights strong participation from underrepresented groups, with women representing 46.8% of entrepreneurs and youth accounting for 38%, reinforcing the sector’s role in widening economic inclusion. Freelancers and small businesses are shown to play a particularly important role in smaller cities and less densely populated regions, supporting local economic activity and financial inclusion.

On the financing side, the report notes that loans to micro and small enterprises are expected to reach 11% of total bank lending by 2025, with a longer-term target of 20% by 2030, up from 5.7% in 2019, reflecting ongoing efforts to improve access to capital.

OBG and SDB said the findings highlight how improved regulation, expanded development financing, and non-financial support such as incubators and capacity-building programs are accelerating entrepreneurship, positioning freelancers and startups as key drivers of Saudi Arabia’s economic diversification and long-term growth.