Saudi Arabia is considered to be an oil-rich country. However, it faces challenges in creating jobs and diversifying Its economy to perpetuate economic growth. Therefore, the role and contribution of small and medium sized enterprises (SMEs) is crucial for the country, leading the government to mitiate a numbe of policy measures. This development goal is fiirthered by the impressive developments in the financial sector. In particular, growth and development of Islamic banking and finance have shown remarkable performance in the country. Such financial developments have a positive impact on the development of SMEs by providing altemative financing options.