Saudi SMEs surge as ambition, authenticity and digital tools reshape entrepreneurship Saudi Arabia’s small and medium-sized enterprise (SME) sector has grown sharply in the last decade, rising to more than 1.7 million firms from roughly 429,000 in 2016 and now employing about 8.8 million people while contributing 22.9 percent of GDP. More than 474,000 of those enterprises are owned by Saudi youth, and national ambitions under Vision 2030 target lifting SMEs’ share of GDP to 35 percent. The expansion of homegrown franchising — 744 Saudi franchise brands operating by the second quarter of 2026, up from 93 in 2020 — and more than 48,000 e-commerce commercial registrations underscore a market pivot toward scalable, digitally enabled business models concentrated in Riyadh, Makkah and the Eastern Province. "As business models evolve, access to secure and seamless payment capabilities is becoming an increasingly important enabler of business growth and economic participation," said Ali Bailoun , senior vice president and group general manager for Saudi Arabia, Bahrain and Oman at Visa . The data point to both volume and qualitative change. Digital payments account for roughly 85 percent of retail transactions nationwide, reflecting a shift in consumer expectations and the growing centrality of payments technology to daily operations. Visa’s Pay and Be Paid study cited in recent industry commentary finds that the majority of Saudi SMEs have moved beyond basic digital payment acceptance — many now both accept and make digital payments — and are exploring deeper integration of payments with invoicing, cash-flow management and other back-office systems. Scale and employment: SMEs now represent a significant labor market pillar, with 8.8 million employees and broad youth entrepreneurship participation (over 474,000 youth-owned enterprises). Franchising and authenticity: The number of Saudi franchise brands expanded to 744 by Q2 2026 from 93 in 2020, demonstrating how local ide…