Mastercard SME Confidence Index: SMEs in Saudi Arabia drive digital transformation with strong optimism for 2025

• 93% of the SMEs surveyed express confidence in the year ahead, accelerating digital payment adoption and harnessing data-driven insights in line with Vision 2030

Small and medium enterprises (SMEs) in Saudi Arabia are viewing 2025 with remarkable optimism, driven by a robust embrace of digitalization 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.

As SMEs in Saudi Arabia continue to innovate and expand, the Mastercard SME Confidence Index serves as a key benchmark for understanding their dynamic needs.

A significant majority (93%) of the SMEs surveyed in the Kingdom are confident about the next 12 months. Business owners are recognizing the critical role of seamless and secure transactions in today’s marketplace while prioritizing the adoption of advanced data analytics and insights, viewing these tools as essential for informed decision-making and strategic growth.

“Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience. 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,” said Dimitrios Dosis, president Eastern Europe, Middle East and Africa, Mastercard.

“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. At Mastercard, we remain committed to supporting SMEs with the tools, partnerships and innovations they need to grow and contribute to the Kingdom’s evolving economy in line with the objectives of Vision 2030,” said Adam Jones, division president, West Arabia, Mastercard.

Digital payments as a cornerstone of SME growth

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 – an increase from 88% in the Mastercard SME Confidence Index 2023 – business owners are leveraging digital transactions to fast-track their growth.

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.

Harnessing data and analytics for strategic advancement

In an increasingly data-driven world, 97% of the SMEs surveyed recognize the importance of better data, analytics and insights in strengthening their businesses. This approach enables enterprises to optimize operations, enhance decision-making and unlock new market opportunities, contributing to long-term resilience and growth.

The study also found that as digitalization accelerates, business owners are prioritizing secure, user-friendly and data-driven financial solutions to stay competitive in a rapidly evolving market.

Saudi SMEs prioritize innovation 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 artificial intelligence (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 last year announced 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 ecommerce 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.

As Saudi Arabia’s SMEs continue to innovate and expand, Mastercard remains dedicated to providing the necessary support through advanced technology, strategic partnerships and tailored solutions.