Abdul Salam Al-Thumairi

Wednesday, July 15, 2026 11:37 | 2 minutes read

The number of small and medium enterprises operating in the real estate and construction sectors has exceeded 370,000 establishments, accounting for 23% of total SMEs in Saudi Arabia, making it the largest sector by number of establishments, according to what Mundhir Al-Faraj, General Manager of Business Development at "Monshaat," told Al-Eqtisadiah.

He explained that the real estate and construction sectors recorded rapid growth in the number of establishments, reaching 134% over five years, specifically since 2021, driven by increasing demand and expanding investment opportunities provided by the Saudi market in the current development phase.

Mon, 22 2026

According to the Business Sector Bulletin of the Saudi Ministry of Commerce during the second quarter of 2026, the total existing commercial registrations exceeded 1.9 million.

Al-Faraj stated that the expansion of major development projects in Saudi Arabia boosts demand for contracting services and real estate activities, opening the door for more small and medium enterprises to actively participate in implementing these projects.

Mon, 29 2026

One-Third of SME Financing Goes to Real Estate and Construction

The General Manager of Business Development at "Monshaat" indicated that the real estate and construction sectors account for about 32% of total financing directed to small and medium enterprises.

He noted that the volume of financing directed to sector establishments recorded an average annual growth of 23% over the past three years, amid continued expansion in real estate and construction projects in Saudi Arabia.

Employment Rises 52% Supported by Major Projects

In terms of the labor market, Al-Faraj explained that the number of workers in small and medium enterprises operating in the real estate and contracting sectors increased by more than 52% over the past period, a clear indicator of expanding economic activity and increased demand for talent in the sector.

Mon, 20 2026

He affirmed that this growth aligns with the major projects being implemented by the Kingdom within the goals of Saudi Vision 2030, which include infrastructure, housing, and new city projects.

He said, "The continued launch of future projects, including those related to hosting global events, will support demand for contracting services and real estate activities, and enhance growth opportunities for small and medium enterprises in the coming years."

He emphasized "Monshaat's" commitment to supporting entrepreneurs and small and medium enterprises in the sector through financing and consulting programs, and linking them to major project opportunities, contributing to raising the share of establishments in GDP and achieving localization targets.

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