Samer Choucair: Allocating Capital to SMEs Requires a Shift Toward Measuring Growth Quality and Productivity
Entrepreneur Samer Choucair said the substantial increase in credit facilities extended to small, medium-sized, and micro enterprises in Saudi Arabia represents an important transformation in the dynamics of capital allocation across the national economy.
He noted that financing growth to SAR 489.2 billion by the end of the first quarter of 2026 reflects a clear expansion in the role of the non-oil private sector and the financial system’s ability to direct liquidity toward industries driving economic growth.
Samer Choucair explained that credit facilities reaching this level, alongside annual growth of 28%, confirms the continuing development of a more inclusive financial ecosystem supporting the objectives of Saudi Vision 2030.
He emphasized that the significance of these figures lies not only in the amount of financing available, but also in the ability of these capital flows to become productive investments that improve operating efficiency, support innovation, and create employment.
“The continuing increase in credit facilities reflects a change in capital-allocation behaviour within the Saudi financial system,” Samer Choucair said. “Financing is no longer concentrated solely among major corporations. It is being directed structurally toward the businesses that drive operating growth and innovation.”
Choucair added that institutional investors, investment funds, and asset managers are monitoring these developments as an early indicator of the strength of the non-oil economic cycle.
The expansion of SME financing creates multiple investment opportunities through the banking sector, finance companies, and financial-technology platforms offering innovative solutions to this category of businesses.
Financing growth comes as Saudi Arabia continues to develop its SME-support ecosystem through credit-guarantee programmes and specialized financing initiatives, including measures intended to reduce the funding gap and improve businesses’ access to capital.
These efforts strengthen the role of the private sector, which represents one of the principal pillars of the economic transformation under Vision 2030.
Samer Choucair noted that the financing data reflects a gradual change in the structure of the Saudi economy, with small and medium-sized enterprises becoming essential drivers of growth and employment.
He emphasized that continued funding flows to these businesses create opportunities for expansion across trade, services, manufacturing, logistics, and financial technology.
Credit facilities extended to small, medium-sized, and micro enterprises reached SAR 489.2 billion by the end of March 2026.
Of this amount, SAR 466.7 billion was provided by the banking sector and SAR 22.5 billion by finance companies.
Medium-sized enterprises accounted for SAR 230.4 billion, equivalent to approximately 47% of total financing, followed by small enterprises with SAR 169.7 billion and micro enterprises with SAR 89.1 billion.
Samer Choucair explained that the banking sector’s continued dominance, accounting for nearly 95% of SME financing, reflects growing confidence in credit quality, particularly given the availability of guarantee programmes and regulatory frameworks designed to reduce risk.
At the same time, he emphasized the importance of developing alternative sources of finance to improve market flexibility and expand the range of options available to entrepreneurs and high-potential businesses.
“The genuine opportunity in the next phase is not limited to increasing the amount of financing,” Choucair said. “It lies in the ability of financial institutions and investors to direct capital toward enterprises with scalable business models, the capacity to improve productivity, and the potential to create sustainable economic value.”
Samer Choucair noted that sovereign wealth funds, asset managers, and private equity funds are assessing the growth in SME financing from two principal perspectives.
The first involves indirect investment through banks and finance companies benefiting from expanding credit activity.
The second consists of direct investment in companies and platforms providing financial and technological solutions to SMEs.
Choucair added that construction, real estate, trade, logistics, manufacturing, and the digital economy will be among the principal beneficiaries of the expanding financing base, particularly as major Vision 2030 projects continue to advance and demand for local services and solutions increases.
Samer Choucair cautioned that investment opportunities should not be evaluated solely according to the volume of credit facilities, but also according to the quality of capital deployment and the risks associated with financing portfolios.
“Excessive emphasis on the volume of facilities without considering the quality of their use could lead to an accumulation of credit risk,” he said. “Institutional investors therefore focus on institutions with disciplined portfolio management and a clear connection between financing and real economic growth.”
Choucair emphasized that the next phase will bring greater attention to indicators such as default rates, the efficiency of credit allocation, and enterprises’ ability to grow revenue and expand across domestic and international markets.
He noted that these measures will become increasingly important in institutional investment decisions.
Samer Choucair said the principal challenge facing the financing ecosystem is not merely the availability of liquidity, but ensuring that this liquidity is converted into higher productivity and stronger competitive capabilities supporting the non-oil economy.
Achieving the target of increasing SMEs’ contribution to gross domestic product will require the continued development of financing instruments and their alignment with higher-value-added sectors.
“The next phase requires institutional investors to move beyond monitoring the volume of credit facilities and begin analysing portfolio quality, default rates, and the productivity generated by financing,” Choucair said. “Real value lies in entities capable of converting credit into sustainable growth in revenue and employment.”
Samer Choucair emphasized that the Saudi economy currently offers a strategic opportunity to reallocate capital toward the non-oil private sector as economic reforms continue and SMEs assume a greater role in the growth cycle.
He stressed that the success of this phase will depend on achieving an appropriate balance between expanding access to finance and preserving credit discipline.
Concluding his remarks, Samer Choucair said investment in the financial infrastructure supporting small and medium-sized enterprises represents one of the most important pathways toward building a more diversified and competitive economy.
He emphasized that investors focusing on growth quality and productivity will be best positioned to benefit from Saudi Arabia’s continuing economic transformation in the years ahead.