The Reality of SMEs in Arab Nations: Experience of Egypt, Jordan and Bahrain

Abstract

The study aims at analyzing the current state of the SMEs sector in three Arab countries, Egypt, Jordan and Bahrain; therefore, we adopt descriptive and analytical approaches. Findings show that SMEs sector plays a vital role in the region as a major source of various economic contributions, but it faces domestic and external challenges, which could hinder its resilience and competitiveness. Most of SMEs are concentrated in the trade sector; other important sectors include small-scale workshops, hotels and restaurants as well as contracting. They are less important in industry and other capital-intensive sectors, and finally, the study recommends specific suggestions, which could enhance the contribution of SMEs sector in national income of the Arab countries.