Saudi Arabia’s banks and financing companies extended $124.6 billion in credit to small and medium-sized enterprises (SMEs) in the fourth quarter of 2025, marking a 33% increase from a year earlier, according to official data.

The share of SME lending in total credit rose to 11.5% by the end of the quarter, up from about 9.6% a year earlier, a report by the Ministry of Investment, Saudi Arabia, citing Saudi Central Bank data, showed. Banks accounted for roughly 95% of total SME financing, with financing companies providing the remainder.

Expanding access to credit remains central to Saudi Arabia’s efforts to raise SMEs’ contribution to gross domestic product to 35% under Vision 2030, from around 20% previously. Increasing SME lending has been a key focus of broader initiatives aimed at strengthening financial inclusion and supporting private-sector-led growth.

The increase in SME financing comes alongside broader economic expansion. Real GDP grew 4.5% in 2025, supported by a 5.7% rise in oil activities and 4.9% growth in non-oil sectors, while government activity expanded by 0.9%.

In parallel, the insurance sector also recorded growth in the third quarter of 2025. Gross written premiums rose 9.7% year on year, led by health insurance, which accounts for 53% of total premiums and grew 14.4%. Motor insurance, representing 21%, increased by the same rate, while property and casualty insurance rose 11.5%. Protection and savings insurance, however, declined by 18.2%.

Investment activity remained largely stable, with gross fixed capital formation edging up 0.1% in 2025. This was driven by a 4.6% increase in non-government investment, which accounted for 89% of the total. Within the non-oil, non-government segment, investment rose 7.3%.

Labor market indicators showed relative stability toward the end of the year. The unemployment rate among Saudi nationals declined to 7.2% from 7.5% in the previous quarter, while overall unemployment rose slightly to 3.5% from 3.4%. Female labor force participation stood at 34.5%.

Inflation remained contained, with the consumer price index rising 1.7% year on year in February 2026. Meanwhile, point-of-sale transactions increased by 3.5%, suggesting steady consumer activity.