Regulatory Alerts2017-03-14
Definition of Small and Medium Enterprises
The Saudi Central Bank issued this circular to formally adopt the General Authority for Small and Medium Enterprises (GASME) definition of micro, small, medium, and large enterprises operating in the Kingdom. The regulation establishes classification criteria based on annual revenues in Saudi riyals and full-time employee counts, mandating that revenue be the primary metric while allowing employee count to serve as a fallback for new enterprises. This definition takes immediate effect and applies to all banks, financing companies, credit information agencies (SIMAH and Bayan), and supervision departments under the regulator's jurisdiction.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank
Headquarters
Banking Policy Department
Reference No.:
Attachments: None
Circular
Your Excellency,
Greetings,
Subject: Definition of Small and Medium Enterprises.
I refer to the powers granted to the Saudi Central Bank under related systems, regulations, and circulars. And in reference to the General Authority for Small and Medium Enterprises (GASME) Board of Directors Decision No. (2-1438) dated 14/3/1438H regarding the approval of the definition of small and medium enterprises operating in the Kingdom, it has been decided as follows:
First: The definition of small and medium enterprises is as follows:
| Enterprise Type | Revenues (SAR million) | Number of Employees (Full-time)* |
|---|---|---|
| Micro | 0 to 3 | 1 to 5 |
| Small | > 3 to 40 | 6 to 49 |
| Medium | > 40 to 200 | 50 to 249 |
| Large | Exceeds any of the above criteria |
- The revenue criterion is adopted in classifying the enterprise type. In the absence of revenue data (new enterprise), the full-time employee count criterion is used for classification.
Second: It shall be effective from the date hereof.
Yours sincerely,
Signature/Stamp
Ahmed bin Abdullah Al-Sheikh
Deputy Governor for Supervision
Distribution Scope:
• Banks and financing companies operating in the Kingdom
• Financing companies operating in the Kingdom
• Saudi Credit Information Company (SIMAH)
• Bayan Credit Information Company (Bayan)
• Supervision Department administrations
P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 463200, Fax: 4672414
Yasser Al-Omeir
Reference No.: 38100064902
Date: 1438/06/16
Attachments: