RIYADH: Saudi Arabia’s rapidly expanding foodservice industry is fueling demand for new financing models as Vision 2030 accelerates tourism and hospitality growth.
With restaurant sales rising about 7 percent annually, according to Bain & Co., alternative funding platforms are increasingly stepping in to support premium dining concepts.
Vision 2030 has transformed demand in the F&B sector faster than traditional capital providers have adapted. According to Arjun Vir Singh, partner and global head of financial services at Arthur D. Little, Saudi Arabia ended 2025 with small and medium-sized enterprise credit reaching SR467.7 billion ($124.7 billion), up 33 percent year on year, with banks accounting for SR446.6 billion of total financing.
Lending to MSMEs now represents 11.5 percent of total bank loan portfolios, up from 9.6 percent a year earlier, though still below the Vision 2030 target of 20 percent.
“The distribution of this capital reveals the structural issue. Micro enterprises — those with annual revenues below SR3 million, where most independently owned premium concepts sit — received only SR83.3 billion, while medium-sized enterprises absorbed SR220.9 billion. Capital is available, but it is concentrated where underwriting is easiest rather than where growth is most dynamic,” Singh told Arab News.
