Abstract: This study aimed to highlight the importance of SMEs in Kuwaiti economy, identify the most important governmental procedures which have been taken by the State of Kuwait with the purpose of encouraging investors to establish their enterprises, increase its participation and contributions to improve macroeconomic indicators and increase economic growth. The study plan to use descriptive analytical approach to study SMEs in State of Kuwait, highlight procedures and policies which have been taken by Kuwaiti government to encourage SMEs and increase their share in national economy. This study concludes that procedures and policies which related to the development of SMEs by State of Kuwait have a positive impact in developing these enterprises and that lead to enhance its developmental role and participation in improvement of macroeconomic indicators like increasing non-oil exports and gross added value for SMEs which lead to increase non-oil GDP (Gross Domestic Product) in Kuwait during the study period from 2002 till 2015. This study is important for researchers, institutions, universities, research centers, organizations and governments which interested in knowing and examine SMEs role. As it highlights the importance of SMEs in Kuwait and governmental procedures which have been taken by Kuwaiti government to encourage these enterprises.