Saudi Arabia's small businesses among the most optimistic in key emerging markets

Small business sentiment across the Kingdom is largely positive in their 12 month outlook toward three key areas:

• Investment - in their businesses.
• Foreign trade - especially with China and Asia.
• Recruitment.

The survey shows that 39% of Saudi businesses with a turnover of less than $30m (SR112.5m) expect to increase capital expenditure while only 19% believe investment in their companies will slow down.

The Kingdom's entrepreneurs are even more optimistic about trade outlook. About 57% believe trade with the rest of the Middle East will expand by up to a fifth or more.

80% predict increased business with mainland China, with more than half of these anticipating growth of more than 20%.

Two thirds of respondents are forecasting a rise in trade with the rest of Asia. And optimists outweigh pessimists about trade prospects with the US, Europe, Latin America and the rest of the world.

Regarding recruitment, owners and top management of KSA's small businesses have the most ambitious plans of any of the 12 emerging markets surveyed with 40% expecting to need to increase their workforces and with one in eight seeking to grow their staff by more than 20%.

"Overall, the leaders of Saudi Arabia's smaller business sector - the vital fuel of every country's economy - are more positive about the short term outlook than their counterparts in almost all other emerging markets surveyed,"

said, Adel Al-Nasser, Deputy Managing Director, of SABB.

"We understand that smaller businesses have significant individual ambition. Collectively, theses businesses form a substantive part of any economy. To reflect their stature, we have reorganized and enhanced our specialist services to this segment in recognition of the fact that they will be our largest customers of tomorrow. We share the confidence that the sector has in itself and in the economy of Saudi Arabia," he added.