This book`s aim is to layout some general principles of support to enhancing the competitiveness of SMEs in the Arab countries. To do so, the paper Divided to two sections; in section I: Small and medium enterprises in the Arab countries (definition and importance), It starts by identifying the General problems of the Arab economies, and then goes on to discuss definitional aspects of SMEs. After that, the study then summarizes the SMEs definition in the Arab countries and concludes the important of SMEs in the Arab countries. In SectionII . Enhancing the competitiveness of the Arab SMEs in the knowledge economy. It discusses the concept and the characteristics of the knowledge economy. Then goes on to discuss the competitiveness of SMEs in the context of economic globalization and then concludes by offering some recommendations, which concentrate on the discussion of the important criteria that needs to be followed by SME support institutions to enhance the competitiveness of SMEs and hence their role in economic growth in the Arab countries,