From Local Champions to Global Competitors: How Smart Connectivity Unlocks SME Potential While funding and incentives matter, access to international markets increasingly defines their growth potential.

Small- and medium-sized enterprises (SMEs) are at the center of economic transformation in the Kingdom of Saudi Arabia and the United Arab Emirates (UAE). In Saudi Arabia, they represent 99.5% of businesses and contribute around a third of GDP¹. In the UAE, SMEs account for 94% of companies and employ over 86% of the private sector workforce². Governments are investing heavily to support this segment, from Saudi Vision 2030 initiatives³ which aim to raise SME GDP contribution to 35%⁴, to the UAE's "Project of the 50"⁵ program, which expand opportunities for entrepreneurs and boost the role of SMEs in driving future growth.

SMEs already drive job creation, innovation, and economic diversification. While funding and incentives matter, access to international markets increasingly defines their growth potential. Competing globally requires faster transit times, flexible delivery options, and smart scalable solutions. With digital capabilities enhancing every step of the supply chain, logistics has become the critical enabler of SME competitiveness.

Building the growth engine

Large-scale investments in both countries are creating a supportive ecosystem for SME expansion. Saudi Arabia plans to channel US$100 billion into logistics and aviation by 2030⁶, sectors that directly bolster global connectivity for small businesses. Meanwhile, the UAE aims to boost foreign trade to US$1.1 trillion by 2031⁷, including more than US$215 billion in non-oil exports⁸, creating new opportunities for SMEs to expand internationally.

At the same time, cultural and manufacturing industries are being strengthened to drive economic growth. Saudi Arabia's designation of 2025 as the "Year of Handicrafts"⁹ highlights how artisan producers and family businesses are being encouraged to bring traditional products into mainstream trade. In the UAE, initiatives such as "Make It in the Emirates"¹⁰ combine marketing and manufacturing incentives with trade facilitation measures to raise the visibility of local products abroad.

These ambitions signal a clear trajectory: SMEs are expected to grow beyond domestic markets and compete internationally across sectors from technology to manufacturing to services. Achieving this depends on reliable, efficient, and smart logistics networks.

Opportunities in the digital economy

The rapid growth of e-commerce is also accelerating the move from local to global competition. In Saudi Arabia alone, the online retail market is projected to almost triple in size over the coming decade, from US$24.6 billion in 2024 to nearly US$68.9 billion by 2033¹¹. The UAE, with its digitally savvy population¹² and a growing number of comprehensive economic partnership agreements¹³, that open new trade corridors and lower barriers to cross-border business, is positioning itself as a global e-commerce hub.

For SMEs, this momentum opens even more possibilities. A clothing designer in Riyadh can sell to customers in Paris or Jakarta with the same ease as serving the domestic market, while a health-tech start-up in Dubai can support clients in New York or Nairobi without the constraints of geography. Cost-effective, reliable cross-border delivery options now make this possible, enabling SMEs to balance speed and cost as they expand internationally. Additionally, simplified import clearance tools and unified digital booking platforms help SMEs reduce paperwork, streamline cross-border trade, and manage shipments end-to-end with greater ease.

Seamless smart connectivity bridges markets

The Gulf has invested heavily in airports, ports, and road networks, creating an integrated network that gives businesses access to international markets. New-generation air and ground hubs in the UAE, for example, can sort thousands of shipments per hour. Combined with the country's strategic location, businesses can reach two-thirds of the world's population within an eight-hour flight. Similarly, nonstop express flights connecting the West with Saudi Arabia has enhanced the Kingdom's access to global trade lanes.

Beyond physical infrastructures, digital trade tools are increasingly important. Electronic customs clearance processes, AI-powered supply chain management, and near real-time shipment tracking give SMEs visibility and predictability. For SMEs entering global trade for the first time, these innovations build confidence that their goods will reach customers efficiently and securely.

With these foundations in place, SMEs in Saudi Arabia and the UAE are well positioned to scale globally and shape the Gulf's next economic chapter.

^FOOTNOTES

^{1 More entrepreneurship: Saudi Arabia's bid to become a global hub for SMEs}

^{2 Empowering SMEs is key to raising Abu Dhabi's economic competitiveness}

^{3 Kingdom of Saudi Arabia Vision 2030}

^{4 Saudi Vision 2030: Empowering The Private Sector}

^{5 UAE ranks first globally in Global Entrepreneurship Monitor 2024-2025 Report for fourth consecutive year}

^{6 GACA participates in the inaugural Global Logistics Forum in Riyadh}

^{7 'We the UAE 2031' vision}

^{8 'We the UAE 2031' vision}

^{9 Saudi Arabia Designates 2025 as the Year of Handicrafts to Celebrate Its Vibrant Cultural Heritage}

^{10 About 'Make it in the Emirates'}

^{11 Saudi Arabia Ecommerce Market Report and Company Analysis 2025-2033}

^{12 Digital market in the United Arab Emirates - statistics & facts}

^{13 UAE's CEPA program strengthens global economic ties with 26 strategic agreements}