This article emphasizes the importance of Small and Medium-Sized Enterprises (SMEs) and large companies in driving economic growth. SMEs are labour-intensive and agile, creating more jobs, while large companies are capital-intensive and rely on technology, having more resources for research and development. In the Gulf Cooperation Council (GCC) region, SMEs contribute significantly to Gross Domestic Product (GDP) and job opportunities, while large companies dominate specific sectors. The research employs a multidisciplinary approach using an extensive literature review to summarize the current literature, highlight the economic impact of SMEs and large companies in GCC, and highlight the importance of large companies in developing local citizens. Policy-makers must consider these differences to integrate these dynamic changes for effective support policies. This study examines the economic impact of SMEs and large companies in the GCC region, providing recommendations to support large businesses. It addresses challenges and opportunities related to employment, household earnings, economic output, and value addition. Promoting the economic impact of SMEs and large companies can lead to sustainable economic growth and development in the GCC region. Also, this article pointed out the importance of large companies and their economic impact in the GCC region; policy recommendations will help the governing bodies in decision-making towards promoting sustainable economic growth.

Abraham, R. (2015). Confronting the Challenge of Political Reforms in GCC States: Domestic Transition via Regional Integration. Available online: http://www.mondialisations.org/medias/pdf/confronting_thechallenge_of_political_reformsingccstates.pdf (accessed on 16 January 2024).

Abrar ul Haq, M., Sankar, J. P., Akram, F., et al. (2021). The role of farmers’ attitude towards their resources to alleviate rural household poverty. Quality & Quantity, 56(4), 2133–2155. https://doi.org/10.1007/s11135-021-01205-8

Adam, N. A., & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of Innovation and Entrepreneurship, 10(1). https://doi.org/10.1186/s13731-021-00156-6

Affum-Osei, E., & Chan, D. K.-S. (2023). Job search in a difficult labour market: linking goal orientation to job search strategies and outcomes with the moderating role of self-control. Current Psychology, 43(4), 2947–2964. https://doi.org/10.1007/s12144-023-04439-x

Alanzi, S., Ratten, V., D’Souza, C., et al. (2022). Culture, Economic, and Entrepreneurial Environment in the Gulf Cooperation Council (GCC) Countries. Strategic Entrepreneurial Ecosystems and Business Model Innovation, 61–74. https://doi.org/10.1108/978-1-80382-137-520221005

Alawi, H. Y., P. Sankar, J., Ali Akbar, M., et al. (2023). Factors influencing turnover intention among healthcare employees during the COVID-19 pandemic in the private hospitals of Bahrain. The Bottom Line, 36(2), 135–160. https://doi.org/10.1108/bl-01-2022-0018

Ali, A. K., & Asfaw, D. M. (2023). Nexus between inflation, income inequality, and economic growth in Ethiopia. PLOS ONE, 18(11), e0294454. https://doi.org/10.1371/journal.pone.0294454

Allen, S., Clark, R., & Schieber, S. (1999). Has Job Security Vanished in Large Corporations? National Bureau of Economic Research. https://doi.org/10.3386/w6966

Alpen Capital. (2022). GCC Retail Industry. Available online: https://alpencapital.com/research/2022/Alpen-Capital-GCC-Retail-Industry-2022.pdf (accessed on 17 January 2024).

Alsahi, H. (2020). COVID-19 and the Intensification of the GCC Workforce Nationalization Policies. Arab Reform Initiative, July, 1-10.

Alsayegh, O. (2023). How Economic and Political Factors Drive the Oil Strategy of Gulf Arab States — And What this Means in the Context of the Global Energy Transition. James A. Baker III Institute for Public Policy of Rice University. https://doi.org/10.25613/KPSA-QK94

Alshahrani, M. A., & Salam, M. A. (2022). The Role of Supply Chain Resilience on SMEs’ Performance: The Case of an Emerging Economy. Logistics, 6(3), 47. https://doi.org/10.3390/logistics6030047

Al-Ubaydli, O., & Jones, E. (2018). Bahrain Human Development Report 2018: Pathways to sustainable economic growth in Bahrain. Available online: https://www.undp.org/sites/g/files/zskgke326/files/migration/bh/Bahrain_HDR_2018.pdf (accessed on 25 January 2024).

Arinaitwe, D. (2021). Practices and strategies for enhancing learning through collaboration between vocational teacher training institutions and workplaces. Empirical Research in Vocational Education and Training, 13(1). https://doi.org/10.1186/s40461-021-00117-z

Ashraf, D., Khawaja, M., & Bhatti, M. I. (2022). Raising capital amid economic policy uncertainty: an empirical investigation. Financial Innovation, 8(1). https://doi.org/10.1186/s40854-022-00379-w

Basyouni, S. S., & El Keshky, M. E. S. (2021). Job Insecurity, Work-Related Flow, and Financial Anxiety in the Midst of COVID-19 Pandemic and Economic Downturn. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.632265

Bayraktar, M., & Algan, N. (2019). The Importance Of SMEs On World Economies. International Conference on Eurasian Economies. https://doi.org/10.36880/c11.02265

Belgoum, F., Khelifa, H., Kebir, H., et al. (2023). The contribution of small and medium enterprises to value added in algeria: an econometric study. Economics & Law, 5(2), 79–90. https://doi.org/10.37708/el.swu.v5i2.7

Billerbeck, A., Breitschopf, B., Winkler, J., et al. (2023). Policy frameworks for district heating: A comprehensive overview and analysis of regulations and support measures across Europe. Energy Policy, 173, 113377. https://doi.org/10.1016/j.enpol.2022.113377

Bozick, R. (2009). Job opportunities, economic resources, and the postsecondary destinations of American youth. Demography, 46(3), 493–512. https://doi.org/10.1353/dem.0.0065

Brennan, T., Ernst, P., Katz, J., & Roth, E. (2020). Building an R&D strategy for modern times. Available online: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/building-an-r-and-d-strategy-for-modern-times (accessed on 16 January 2024).

Britannica. (2023). Gulf Cooperation Council. Encyclopedia Britannica. Available online: https://www.britannica.com/topic/Gulf-Cooperation-Council (accessed on 16 January 2024).

Carvalho, A., Ghosn, J., Kassab, J., et al. (2018). Post oil gulf: SMES to the rescue? Available online: https://www.ticg.com.kw/content/dam/oliver-wyman/ME/ticg/publications/TICG_PoV_Post_Oil_Gulf_SMEs_to_the_rescue_FINAL.pdf (accessed on 16 January 2024).

Ciani, A., Hyland, M. C., Karalashvili, N., et al. (2020). Making It Big. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-1557-7

Conz, E., Denicolai, S., & Zucchella, A. (2017). The resilience strategies of SMEs in mature clusters. Journal of Enterprising Communities: People and Places in the Global Economy, 11(1), 186–210. https://doi.org/10.1108/jec-02-2015-0015

Côté, S., House, J., & Willer, R. (2015). High economic inequality leads higher-income individuals to be less generous. Proceedings of the National Academy of Sciences, 112(52), 15838–15843. https://doi.org/10.1073/pnas.1511536112

Crowther, D., & Seifi, S. (2021). The Palgrave Handbook of Corporate Social Responsibility. https://doi.org/10.1007/978-3-030-42465-7

D’Imperio, R. (2018). Growing the global economy through SMEs Contents. Available online: http://www.edinburgh-group.org/media/2776/edinburgh_group_research_-_growing_the_global_economy_through_smes.pdf (accessed on 19 January 2024).

Darwish, S., Gomes, A., & Bunagan, V. (2020). Family Businesses (FBS) in Gulf Cooperation Council (GCC): Review and Strategic Insights. Academy of Strategic Management Journal, 19(3), 1-13.

de Wit-de Vries, E., Dolfsma, W. A., van der Windt, H. J., et al. (2018). Knowledge transfer in university–industry research partnerships: a review. The Journal of Technology Transfer, 44(4), 1236–1255. https://doi.org/10.1007/s10961-018-9660-x

Durand-Lasserve, O. (2022). Nationalization of the private sector labor force, quotas, matching and public jobs, an illustration with Saudi Arabia. The Quarterly Review of Economics and Finance, 86, 98–117. https://doi.org/10.1016/j.qref.2022.06.004

Economic Diversification in the Gulf Region, Volume I. (2018). In A. Mishrif & Y. Al Balushi (Eds.), The Political Economy of the Middle East. Springer Singapore. https://doi.org/10.1007/978-981-10-5783-0

Elbanna, S., & Fatima, T. (2022). Quantifying people in the GCC region: the uses, challenges, and efficacy of the quota system policy. Human Resource Development International, 26(3), 292–316. https://doi.org/10.1080/13678868.2022.2116260

Enhancing SME access to diversified financing instruments. Strengthening SMEs and Entrepreneurship for Productivity and Inclusive Growth, 53–71. https://doi.org/10.1787/16fe6707-en

Erdin, C., & Ozkaya, G. (2020). Contribution of small and medium enterprises to economic development and quality of life in Turkey. Heliyon, 6(2), e03215. https://doi.org/10.1016/j.heliyon.2020.e03215

Erixon, F. (2018). The Economic Benefits of Globalization for Business and Consumers. Available online: https://ecipe.org/wp-content/uploads/2018/01/Globalization-paper-final.pdf (accessed on 25 February 2024).

Fallah Shayan, N., Mohabbati-Kalejahi, N., Alavi, S., et al. (2022). Sustainable Development Goals (SDGs) as a Framework for Corporate Social Responsibility (CSR). Sustainability, 14(3), 1222. https://doi.org/10.3390/su14031222

Fazzari, S. M., Hubbard, R. G., Petersen, B. C., et al. (1988). Financing Constraints and Corporate Investment. Brookings Papers on Economic Activity, 1988(1), 141. https://doi.org/10.2307/2534426

Flaherty, D., & Gibson, B. (2017). Employment impact assessments: A review of methodologies. Available online: https://webapps.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_608077.pdf (accessed on 16 January 2024).

GCC-STAT. (2021). The spatial platform for renewable energy in the GCC countries. Available online: https://gccstat.org/en/ (accessed on 16 January 2024).

Gereffi, G., Lim, H.-C., & Lee, J. (2021). Trade policies, firm strategies, and adaptive reconfigurations of global value chains. Journal of International Business Policy, 4(4), 506–522. https://doi.org/10.1057/s42214-021-00102-z

Gherghina, Ștefan C., Botezatu, M. A., Hosszu, A., et al. (2020). Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation. Sustainability, 12(1), 347. https://doi.org/10.3390/su12010347

Ghoddusi, H., Moghaddam, H., & Wirl, F. (2022). Going downstream – An economical option for oil and gas exporting countries? Energy Policy, 161, 112487. https://doi.org/10.1016/j.enpol.2021.112487

ILO. (2018). ILO Global Estimates on International Migrant Workers. Available online: https://www.onlinelibrary.iihl.org/wp-content/uploads/2020/05/2018-I1-2.pdf (accessed on 4 February 2024).

IMF(International Monetary Fund, Middle East and Central Asia Dept). (2022). Gulf Cooperation Council: Economic Prospects and Policy Challenges for the GCC Countries. Policy Papers, 2022(052), 1.

Ismail Albalushi, K., & Naqshbandi, M. M. (2022). Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East. Knowledge, 2(3), 525–538. https://doi.org/10.3390/knowledge2030031

Istipliler, B., Bort, S., & Woywode, M. (2023). Flowers of adversity: Institutional constraints and innovative SMEs in transition economies. Journal of Business Research, 154, 113306. https://doi.org/10.1016/j.jbusres.2022.113306

John, J. A. J., Sankar, J. P., Alsalman, M. M., et al. (2022). Effect of Students Engagement and Moderating Effect of Class & Web-based Tools on Students Performance. International Journal on Recent and Innovation Trends in Computing and Communication, 10(7), 06–13. https://doi.org/10.17762/ijritcc.v10i7.5559

John, J. A., Diotay, D. C., Sankar, J. P., et al. (2023). The mediating role of innovation and change in the relationship between organizational learning and the sustainability of banks. Corporate Governance and Organizational Behavior Review, 7(2, special issue), 399–408. Portico. https://doi.org/10.22495/cgobrv7i2sip18

Kabbani, N., & Mimoune, N. Ben. (2021). Economic diversification in the Gulf: Time to redouble efforts. Brookings. https://www.brookings.edu/articles/economic-diversification-in-the-gulf-time-to-redouble-efforts/ (accessed on 16 January 2024).

Kadocsa, G., & Francsovics, A. (2011). Macro and micro economic factors of small enterprise competitiveness. Acta Polytechnica Hungarica, 8(1), 23-40.

Kaya, A., & Tsai, I.-T. (2016). Inclusive Economic Institutions in the Gulf Cooperation Council States: Current Status and Theoretical Implications. Review of Middle East Economics and Finance, 12(2). https://doi.org/10.1515/rmeef-2015-0015

Knesl, J. (2023). Automation and the displacement of labor by capital: Asset pricing theory and empirical evidence. Journal of Financial Economics, 147(2), 271–296. https://doi.org/10.1016/j.jfineco.2022.11.003

Lallemand, T., Plasman, R., & Rycx, F. (2005). Why do large firms pay higher wages? Evidence from matched worker‐firm data. International Journal of Manpower, 26(7/8), 705–723. https://doi.org/10.1108/01437720510628149

Lavis, J. N., Robertson, D., Woodside, J. M., et al. (2003). How Can Research Organizations More Effectively Transfer Research Knowledge to Decision Makers? The Milbank Quarterly, 81(2), 221–248. Portico. https://doi.org/10.1111/1468-0009.t01-1-00052

Lee, N., & Clarke, S. (2019). Do low-skilled workers gain from high-tech employment growth? High-technology multipliers, employment and wages in Britain. Research Policy, 48(9), 103803. https://doi.org/10.1016/j.respol.2019.05.012

Li, C., Ahmed, N., Qalati, S. A., et al. (2020). Role of Business Incubators as a Tool for Entrepreneurship Development: The Mediating and Moderating Role of Business Start-Up and Government Regulations. Sustainability, 12(5), 1822. https://doi.org/10.3390/su12051822

Lukonga, I. (2020). Harnessing Digital Technologies to Promote SMEs in the MENAP Region. IMF Working Papers, 2020(135), 1. https://doi.org/10.5089/9781513550770.001

Manyika, J., Birshan, M., Smit, S., et al. (2021). A new look at how corporations impact the economy and households. Available online: https://www.mckinsey.com/~/media/mckinsey/business%20functions/strategy%20and%20corporate%20finance/our%20insights/a%20new%20look%20at%20how%20corporations%20impact%20the%20economy%20and%20households/a-new-look-at-how-corporations-impact-the-economy-and%20households-vf.pdf (accessed on 6 January 2024).

Manzoor, F., Wei, L., & Siraj, M. (2021). Small and medium-sized enterprises and economic growth in Pakistan: An ARDL bounds cointegration approach. Heliyon, 7(2), e06340. https://doi.org/10.1016/j.heliyon.2021.e06340

Marmore Team. (2021). Importance of SMEs in GCC: Challenges amid COVID and way forward. https://www.marmoremena.com/en/insights/importance-of-smes-in-gcc-challenges-amid-covid-and-way-forward/ (accessed on 16 January 2024).

Moscarini, G., & Postel-Vinay, F. (2012). The Contribution of Large and Small Employers to Job Creation in Times of High and Low Unemployment. American Economic Review, 102(6), 2509–2539. https://doi.org/10.1257/aer.102.6.2509

Negara, S. D., & Ramayandi, A. (2020). Laying the Foundations for Future Growth Acceleration? Bulletin of Indonesian Economic Studies, 56(1), 1–21. https://doi.org/10.1080/00074918.2020.1743014

OECD. (2017). Enhancing the Contributions of SMES in a Global and Digitalised Economy. In Meeting of the OECD Council at Ministerial Level. Available online: https://www.oecd.org/mcm/documents/C-MIN-2017-8-EN.pdf (accessed on 16 January 2024).

OECD. (2020). Business Insights on Emerging on Emerging Markets 2021. Emnet Journal, 4(1).

Onwuegbuzie, A. J., & Frels, R. (2016). Seven Steps to a Comprehensive Literature Review, 1st ed. Sage Publication Limited.

PASNICU, D. (2018). Supporting SMEs in creating jobs. Journal of Economic Development, Environment and People, 7(1), 15. https://doi.org/10.26458/jedep.v7i1.575

Pattali, S., Sankar, J. P., Al Qahtani, H., et al. (2024). Effect of leadership styles on turnover intention among staff nurses in private hospitals: the moderating effect of perceived organizational support. BMC Health Services Research, 24(1). https://doi.org/10.1186/s12913-024-10674-0

Performance analysis of micro machining and optimizing the process parameters on edm for al-si-cu metal matrix using taguchi method. Chacko, J. A., Kumar, K. M. A., Soman, A. T., Krishna, N. G., & Harshini, K. K. (2020). Performance analysis of micro machining and optimizing the process parameters on edm for al-si-cu metal matrix using taguchi method. Journal of Critical Reviews, 7(14), 1297–1306. https://www.jcreview.com/paper.php?slug=performance-analysis-of-micro-machining-and-optimizing-the-process-parameters-on-edm-for-al-si-cu-metal-matrix-using-taguchi-method

Perkmann, M., Tartari, V., McKelvey, M., et al. (2013). Academic engagement and commercialisation: A review of the literature on university–industry relations. Research Policy, 42(2), 423–442. https://doi.org/10.1016/j.respol.2012.09.007

Petrescu, A. G., Bîlcan, F. R., Petrescu, M., et al. (2020). Assessing the Benefits of the Sustainability Reporting Practices in the Top Romanian Companies. Sustainability, 12(8), 3470. https://doi.org/10.3390/su12083470

Pulka, B. M., & Gawuna, M. S. (2022). Contributions of SMEs to Employment, Gross Domestic Product, Economic Growth and Development. Jalingo Journal of Social and Management Sciences, 4(1).

Rababah, N. M. (2023). Empowerment and Innovation Types: Key Advance Performance of SMEs in Saudi Arabia. Saudi Journal of Humanities and Social Sciences, 8(1), 1–13. https://doi.org/10.36348/sjhss.2023.v08i01.001

Ragazou, K., Passas, I., Garefalakis, A., et al. (2023). Business intelligence model empowering SMEs to make better decisions and enhance their competitive advantage. Discover Analytics, 1(1). https://doi.org/10.1007/s44257-022-00002-3

Rana, S. (2022). Why Research on Economic Growth Is Important? Future Research Areas on Economic Growth. FIIB Business Review, 11(2), 127–129. https://doi.org/10.1177/23197145221105158

Rijkers, B., Arouri, H., Freund, C., et al. (2014). Which firms create the most jobs in developing countries? Evidence from Tunisia. Labour Economics, 31, 84–102. https://doi.org/10.1016/j.labeco.2014.10.003

Rotar, L. J., Pamić, R. K., & Bojnec, Š. (2019). Contributions of small and medium enterprises to employment in the European Union countries. Economic Research-Ekonomska Istraživanja, 32(1), 3302–3314. https://doi.org/10.1080/1331677x.2019.1658532

Ruby. (2022). Bahrain is fifth in the Gulf and the 28th with the highest average salary globally. The News Dept.

Sanders, C. K., & Scanlon, E. (2021). The Digital Divide Is a Human Rights Issue: Advancing Social Inclusion Through Social Work Advocacy. Journal of Human Rights and Social Work, 6(2), 130–143. https://doi.org/10.1007/s41134-020-00147-9

Shao, K., & Wang, X. (2023). Do government subsidies promote enterprise innovation?—Evidence from Chinese listed companies. Journal of Innovation & Knowledge, 8(4), 100436. https://doi.org/10.1016/j.jik.2023.100436

Shayah, M. H., & Sun, Z. (2019). Employment in the Gulf Cooperation Council (GCC) Countries – Current Issues and Future Trends. Proceedings of the 2nd International Conference on Social Science, Public Health and Education (SSPHE 2018). https://doi.org/10.2991/ssphe-18.2019.94

Sim, L.-C. (2020). Low-carbon energy in the Gulf: Upending the rentier state? Energy Research & Social Science, 70, 101752. https://doi.org/10.1016/j.erss.2020.101752

Snc Lavalin. (2022). Engineering Net Zero. The Engineer, 302(7935), 5-7. https://doi.org/10.12968/s0013-7758(22)90204-1

Social Change in the Gulf Region. (2023). In M. M. Rahman & A. Al-Azm (Eds.), Gulf Studies. Springer Nature Singapore. https://doi.org/10.1007/978-981-19-7796-1

Stepanyan, V., Abajyan, G., Ndoye, A., et al. (2019). Enhancing the Role of SMEs in the Arab World—Some Key Considerations. Policy Papers, 19(040). https://doi.org/10.5089/9781513522760.007

Surya, B., Menne, F., Sabhan, H., et al. (2021). Economic Growth, Increasing Productivity of SMEs, and Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 20. https://doi.org/10.3390/joitmc7010020

Ulrichsen, K. (2016). The GCC States and the Shifting Balance of Global Power. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2825920

Umar, T. (2021). The Impact of COVID-19 on the GCC Construction Industry. International Journal of Service Science, Management, Engineering, and Technology, 13(2), 1–17. https://doi.org/10.4018/ijssmet.20220301.oa1

Vadakalu Elumalai, K., P Sankar, J., R, K., et al. (2020). Factors Affecting the Quality of E-Learning During the COVID-19 Pandemic from the Perspective of Higher Education Students. Journal of Information Technology Education: Research, 19, 731–753. https://doi.org/10.28945/4628

van Niekerk, A. (2020). Inclusive Economic Sustainability: SDGs and Global Inequality. Sustainability, 12(13), 5427. https://doi.org/10.3390/su12135427