Research Paper on:
SMEs and Banking in Saudi Arabia

Unformatted Sample Text from the Research Paper:
sized enterprises (SMEs). SMEs may therefore be an important part of the economy and as such are not only important in terms of job creation and economic development, but are  an increasingly important sector for banking organisations. It has been noted in the Middle East that they are playing an important role in the development and diversification of the economies  and make up a larger segment in banking terms (Anonymous, 2006). This paper will examine the importance and position of SMEs in terms of cooperate and commercial banking in Saudi  Arabia. 1.1 Aims and Objectives The aim of this paper is to assess the current and potential future position of SME sector in the banking in Saudi Arabia, questions to  be answered will include; * How SMEs are defined * How important SMEs are in the Saudi economy as a whole * How important SMEs may be to the economy  in the future. * What are the main issues for SMEs in the area in terms of banking * Whether there is a match or a mismatch between what  the businesses need and what the banks offer * How banks assess and meet the needs of SMEs. The subject is broad, but the levels of  SMEs in the country is still relativity low, despite making yup the majority of private enterprises (Otsuki, 2002). 2. Literature Review In many  developed countries SMEs can make up the majority of companies and contribute up to 80% of the industrial production (Otsuki, 2002). In addition to this todays large multinational corporations were  once small operations, Hewlett Packard started in a garage (Grant, 2004). This shows many companies do manage to succeed and grow, and the development of large enterprises relies on the