Analytical and Benchmarking Study of the Impact of Small and Medium Enterprises Sector on Economic Growth from The Perspective of Islamic Economy

The Study aimed to analyze and measure the impact of the small and medium enterprises sector in the Kingdom of Saudi Arabia in achieving economic growth, and to study the nature of the relationship between the growth of the small and medium enterprises sector and economic growth, and the impact of Islamic economic thought in that, It also aimed to analyze the reality and development of the small and medium enterprise sector in the Kingdom, in addition to identifying the policies and initiatives that support the small and medium enterprise sector, with an understanding and analysis of measuring the impact of the growth of the small and medium enterprise sector on economic growth in the Kingdom . To achieve the goal of the study, the researcher relied on the historical and descriptive analytical method. Data were collected from published sources from official authorities and scientific journals. The data was reviewed in a descriptive statistics method. The time range of the study, during the period from 2006 to 2021, was on small and medium enterprises in the Kingdom of Saudi Arabia.The thesis consisted of four main chapters, the first chapter discussed the theoretical analytical framework of the nature of the relationship between the growth of the small and medium enterprises sector and economic growth. The fourth chapter is an analytical study to measure the impact of the growth of the small and medium enterprises sector on the economic growth in the Kingdom.The study concluded with some results and recommendations, the most important of which are: Small and medium enterprises managed to achieve a growth rate of about 5% during 2022 compared to previous years, and their number exceeded 750,000, The majority of small and medium enterprises, in terms of geographical distribution, are concentrated in Riyadh, Makkah, and Sharqiya. The number of workers in micro-enterprises that employ (1-5) workers in the small and medium-sized enterprises sector constituted 26% of the total employees, where the percentage represented 18% of the total employees in the third quarter of 2019. Small and medium enterprises attracted 62% of the appointments made in the private sector. The contribution of small and medium enterprises increased by 45%, bringing their contribution to the economy from 21.9% to 28.7% between the years from 2016 to 2020. The share of small and medium enterprises in government procurement increased from 15% in 2018 to 24% in 2020, with a value exceeding 160 milyar Rial, Saudi SME financing exceeds $22.7 milyar until 2021,The study concluded with recommendations, the most important of which is the need to increase government support for small and medium enterprises so that these enterprises can export or expand externally, while this role is not limited to financing or programs and initiatives to support these enterprises only, but rather expands to include the development of new laws and legislation necessary and keeping pace with the requirements of the times to support These facilities and to facilitate their mission of external expansion