Small and medium-sized enterprises (SMEs) in the Middle East will become increasingly influential in determining employment levels, according to an international banking institution.

Standard Chartered Bank has conducted a report into the region, which identified the important role that SMEs have in creating jobs and gross domestic product (GDP) growth in south-west Asia and north-east Africa, Business 24/7 reported.

This influence will become more significant as the Middle East's markets "evolve and become more competitive" as business environments move away from large conglomerates based on oil to the development of a significant private sector.

According to the report, these changes will affect SMEs in Gulf countries more than elsewhere in the world because of the region's relatively young population.

Specifically, figures in the review revealed that small firms contribute to 86 per cent of employment in the United Arab Emirates, despite only accounting for 30 per cent of GDP.

Last week, the Saudi Arabian government unveiled a series of new reforms designed to increase labor market participation among the country's young and unemployed.