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6/30/25, 3:13 PM Bridging the liquidity gap for small businesses in the Middle East | Khaleej Times
Bridging the liquidity gap for small businesses in the

Middle East

Unlocking SME growth in Mena requires shifting mindsets and evolving financial access

Published: Sun 29 Jun 2025, 6:45 PM

By: Kunal Jhunjhunwala Share: Follow us

Small and medium-sized enterprises (SMEs) in the Middle East and North Africa (Mena) are being

called the new engines of economic diversification. From Saudi Vision 2030 to the UAE’s Projects of
the 50, the region’s leadership has placed SMEs at the centre of national development plans.

In the UAE alone, the SME base is expected to reach 1 million by 2030. However, a persistent and
growing liquidity gap remains the one factor constraining this crucial sector. As Saudi Arabia aims to
increase SME contribution to GDP from 30 per cent to 35 per cent, a financing gap of more than SAR
300 billion still hangs over the horizon. The momentum for policy advancement is visible through
various efforts across Mena countries; however, a yawning gap exists between the available financial

capacity and the needs of evolving high-growth SMEs. Structural barriers like stiff collateral
requirements, an underdeveloped credit scoring infrastructure, fragmented regulatory environments,
and limited data-sharing frameworks restrict access to financing. Today’s reality is stark: unless the

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