Saudi Real Estate, Construction SMEs Surge 134% To Exceed 370k

RIYADH: The number of small and medium enterprises operating across the real estate and construction sector has surpassed 370,000 establishments, representing 23 percent of the total SMEs in Saudi Arabia. 

This makes it the largest sector by number of establishments, according to Munther Al-Farraj, general manager of business development at Monsha’at, who spoke to Al-Eqtisadiah. 

He explained that the real estate and construction sector recorded rapid growth in the number of establishments, growing 134 percent since 2021, driven by increasing demand and expanding investment opportunities offered by the Saudi market during the current stage of development. 

According to the Business Sector Bulletin issued by the Saudi Ministry of Commerce for the second quarter of 2026, the total number of active commercial registrations exceeded 1.9 million. 

Al-Farraj noted that the expansion of major development projects in Saudi Arabia is boosting demand for contracting services and real estate activities, creating more opportunities for SMEs to participate in executing these projects. 

One-third of SME financing 

Al-Farraj pointed out that the real estate and construction sector accounts for around 32 percent of the total financing directed to SMEs. 

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

Employment rises 52%  

On the labor market front, Al-Farraj explained that the number of workers in SMEs operating in the real estate and construction sector rose by more than 52 percent over the past period, a clear sign of expanding economic activity and increasing demand for skilled talent in the sector.  

He confirmed that this growth is in line with the major projects being implemented by the Kingdom as part of Saudi Vision 2030 initiatives, which include infrastructure, housing, and new city projects. 

He said: “The continued launch of future projects, including those linked to hosting global events, will support demand for contracting services and real estate activities, and enhance growth opportunities for SMEs in the coming years.” 

He emphasized Monsha’at’s commitment to supporting entrepreneurs and SMEs in the sector through financing and consulting programs, while connecting them with opportunities in major projects, contributing to increasing the sector’s contribution to GDP and achieving localization targets.