Business registrations see 78% annual growth as Saudi private sector booms

RIYADH: More than 120,000 commercial registrations were issued by the Saudi Ministry of Commerce in the second quarter of 2024, marking a 78 percent year-on-year increase.   

According to data from the ministry, a total of 121,521 official identification cards for businesses were issued during the three months to the end of June, up from 68,222 in the same period last year. 

The data also revealed registration growth across several key sectors. E-commerce saw a 17.47 percent yearly increase in issued records, reaching 40,697 registrations. 

Container handling services experienced a 48 percent growth with 2,457 registrations, while logistics services saw a 76 percent increase, totaling 11,928 registrations. 

Urban and suburban passenger transportation, arts, entertainment and recreation, and short-term accommodation all saw increases in registrations, as did  cloud computing services. 

Notably, artificial intelligence commercial registrations rose by 53 percent, reaching 8,948. 

The electronic games industry, mining and quarrying, and the manufacture of pharmaceuticals and medicinal products also recorded rises in commercial registrations. 

This surge comes as the Kingdom ranks among the top 20 countries with the most competitive global markets, holding the 16th position out of 67 countries, according to the World Competitiveness Ranking by the International Institute for Management Development

Additionally, Saudi Arabia ranks fourth among the G20 countries in terms of business legislation and infrastructure, highlighting its commercial appeal. 

The Saudi Ministry of Commerce’s vision is to achieve a pioneering position for the commerce sector in the Kingdom within a fair and stimulating environment. To this end, the ministry aims to develop and implement effective policies and mechanisms to contribute to sustainable economic development. 

Riyadh recorded the highest number of commercial registrations during the second quarter of the year with 52,192, followed by the Eastern Provinces with 20,148, and Makkah with 18,904.   

The report also indicated that 45 percent of registrations were issued to females. Currently, the Kingdom has granted over 1.5 million commercial instruments. 

Additionally, Saudi Arabia’s non-oil private sector showcased robust growth in June, driven by increased demand, higher output levels, and a rise in employment, according to a report. 

The latest S&P Global Purchasing Managers’ Index showed that the Riyad Bank Saudi Arabia PMI stabilized at 55 from 56.4 in May, marking the lowest reading since January 2022.  

Despite the slowdown in new orders, which saw the slowest growth in nearly two and a half years, non-oil businesses reported a substantial rise in output, helping the Kingdom lead the region with the strongest expansion figures.