Riyadh – Mubasher: Small and medium enterprises (SMEs) in Saudi Arabia are viewing 2025 with remarkable optimism that is driven by a robust embrace of digitalisation and innovative technologies, according to the third edition of the Mastercard SME Confidence Index.
This positive outlook aligns seamlessly with the Kingdom's Vision 2030 objectives, aiming to diversify the economy and enhance the contribution of SMEs to the national GDP.
A significant majority representing 93% of the SMEs surveyed in the Kingdom are confident about the next 12 months.
Business owners are recognising the critical role of seamless and secure transactions in today's marketplace while prioritising the adoption of advanced data analytics and insights, viewing these tools as essential for informed decision-making and strategic growth.
Mastercard’s President for Eastern Europe, Middle East, and Africa, Dimitrios Dosis, said: “Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience.”
Dosis elaborated: “As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion. Their ability to adapt and grow in a rapidly evolving business landscape reflects the strength of an ecosystem that prioritizes access to finance, digital enablement, and sustainable growth.”
Meanwhile, the widespread adoption of digital payments among Saudi SMEs underscores a strategic move towards efficiency and customer satisfaction.
With 99% of the SMEs surveyed in Saudi Arabia now accepting digital payments, marking an increase from 88% in the Mastercard SME Confidence Index 2023, business owners are leveraging digital transactions to fast-track their growth.
Mastercard’s Division President for West Arabia, Adam Jones, noted: “The confidence among SMEs in Saudi Arabia highlights the strength and adaptability of this sector. As businesses continue to embrace digitalization and new technologies, access to secure payments, data-driven insights and financial solutions will be key enablers of their success.”
SMEs cite enhanced credibility with government and financial institutions (56%), streamlined transactions with suppliers and employees (55%), and faster access to revenues (55%) as the top benefits of a digitized economy.
The study also found that as digitalisation accelerates, business owners are prioritising secure, user-friendly, and data-driven financial solutions to stay competitive in a rapidly evolving market.
AI and Digital Inclusion for Growth
As Saudi Arabia’s SME sector continues to evolve, business owners are focused on leveraging innovation and expanding digital inclusion to sustain long-term growth.
Many SMEs see AI, automation and digital platforms as essential tools for streamlining operations and enhancing customer engagement.
According to the Mastercard SME Confidence Index, 72% of the SMEs surveyed have identified AI adoption as a key priority, reflecting a growing emphasis on digital transformation.
Private sector collaboration is also viewed as a key driver of success, with 66% of the SMEs surveyed highlighting the importance of partnerships in gaining access to financial resources, technology and business insights.
Additionally, as businesses embrace digital transformation, 97% of the respondents believe cybersecurity and regulatory support remain top considerations for ensuring a secure and resilient commercial environment.
Aligning with Vision 2030's emphasis on economic diversification and SME empowerment, Mastercard announced in 2024 the launch of a local technology infrastructure to process e-commerce transactions efficiently, reinforcing its position as an enabler of Saudi Arabia’s digital economy. Under the patronage of the Saudi Central Bank (SAMA), Mastercard Gateway continues to enhance the Kingdom’s digital payments ecosystem, providing businesses with seamless, secure payment solutions to drive growth and innovation in the e-commerce sector.
Additionally, Mastercard joined forces with Saudi Awwal Bank (SAB) to introduce the SME Business credit card that enables small businesses to manage their finances efficiently while facilitating access to credit.
Earlier in February 2025, Saudi Arabia hosted the leading tech and AI platform LEAP for four days in the capital Riyadh.
