Saudi Arabia has seen a significant rise in business activity, with a 60% increase in commercial records issued in 2024, totaling 521,969, as reported by the Ministry of Commerce. This marks a substantial jump from the 368,038 records issued in 2023.
The Kingdom’s strategy to diversify its economy beyond oil dependency is central to this growth. By 2030, the goal is to increase the private sector’s GDP contribution from 40% to 65%, with small and medium enterprises (SMEs) boosting their share from 20% to 35%.
The 2024 commercial registrations span various sectors, with a focus on wholesale and retail trade, construction, accommodation, food services, and manufacturing. This surge is attributed to the New Companies Law, effective from early 2023, which introduced reforms to streamline business operations and enhance the corporate environment.
By the third quarter of 2024, the number of commercial records had risen to 389,413 from 230,762 prior to the law’s implementation. Key reforms include simplified joint-stock company procedures, remote shareholder participation, and new financing options, such as allowing debt issuance by limited liability companies.
The law also facilitates broader ownership, simplifies the establishment of various company types, and modernizes rules for mergers and transformations. Small and micro enterprises benefit from reduced compliance requirements, such as exemption from external audits.
Enhanced digital services now allow for remote shareholder meetings and decision-making, removing barriers across all stages of company formation and operation.