Monsha’at, Saudi Arabia’s Small and Medium Enterprises General Authority, has released its latest quarterly SME Monitor, providing a detailed overview of the latest trends and developments shaping the Kingdom’s dynamic SME ecosystem.

This edition highlights a 48 percent y-o-y increase in new commercial registrations in Q1, key trends in the local and global handicrafts sector, and the many ways in which Saudi Arabia is empowering its next generation of artisanal SMEs.

The report sheds light on the rich heritage of Saudi handicrafts, several of which have been listed in UNESCO’s list of Intangible Cultural Heritage.

In addition to well-known mainstays such as Al-Sadu weaving, Al-Qatt Al-Asiri wall decoration, Bisht tailoring, Jambiya daggers, and Madinah pottery, the report also features insights into the cultural and economic significance of Saudi handicrafts. For these reasons and others, 2025 has been designated the “Year of Handicrafts.” 

Thanks to a steady increase in tourism, e-commerce, and consumer interest in authentic Saudi arts and crafts, the report shows, rural female entrepreneurs in particular also stand to gain from a sector expected to be worth $1.3 trillion by 2028. The recent launch of the Saudi Artisanal Company is an example of the sector’s promise.

In addition to aiming to create 9,000 new handicrafts jobs by 2030, SAC hopes to serve 15 percent of the domestic handicrafts market by then, the report shows. Thanks to a raft of recent government initiatives to empower handicrafts SMEs, from the Heritage Commission to the Royal Institute of Traditional Arts, opportunities for artisanal entrepreneurs are rife.

In addition to its coverage of handicrafts trends and developments in Saudi Arabia, the latest SME Monitor also has a special section on global developments in the sector. Chief among these are a greater emphasis on sustainability and eco-friendliness, e-commerce expansion, new technology, and a desire for cultural preservation.

Artisans in Uganda, the report shows, have transformed banana waste into valuable handicrafts such as rugs and lampshades, while designers elsewhere have found ways to use 3D printing with biodegradable materials to create customized garments.

In its survey of broader SME developments across Saudi Arabia, the report also reveals a remarkable increase in commercial registrations in Q1 2025, a key indicator of the country’s booming entrepreneurial landscape. In addition to 154,638 new registrations, sectors like e-commerce reached 41,322 active registrations in that quarter, with an impressive six percent y-o-y increase.

In a show of technological advancement, the number of active cloud-computing registrations shot up by 33 percent.

Thanks to a wide variety of enablement, financing, and business development programs offered by Monsha’at, more than 22,000 SMEs benefited from Saudi Arabia’s leading SME enabler in Q1 2025, the report shows.