The Kingdom of Saudi Arabia has observed a significant uptick in business registrations, marking a 12 percent increase from 2019 to 2023. The total number of commercial records has now exceeded 1.12 million, according to a high-ranking official.
During a collaborative session held in Jeddah, which was aimed at addressing challenges and improving the business ecosystem within the Kingdom, Minister of Commerce Majid Al-Qasabi shared these insights.
The meeting brought together Mohammed Yousuf Naghi, the chairman of the Jeddah Chamber of Commerce, board members, and a diverse group of community representatives, including investors, business owners, and entrepreneurs.
Jeddah itself has seen a 14 percent rise in commercial records over the past five years, with the figure now standing at more than 192,000, as stated by the minister.
Al-Qasabi noted that Jeddah is second only to Riyadh in terms of company registrations across Saudi cities.
He highlighted the substantial growth in specific business structures, with limited-liability companies increasing by 40 percent, totaling 229,000, while joint-stock companies have risen by 15 percent, amounting to 2,756.
The minister accentuated the ongoing improvements to the legislative environment, with over 70 laws being either devised or enhanced since the launch of Saudi Vision 2030.
The Companies Law, in particular, has been pivotal in streamlining business operations and fostering a conducive investment environment. It addresses the governance and sustainability of family businesses, encourages entrepreneurship, and provides essential support to startups.
Continued dedication to improving trust within the business sector is evident through the enhancement of various laws, including those related to consumer protection, commercial transactions, trademarks, and the commercial register.
Al-Qasabi discussed the legislative and procedural reforms that the National Competitiveness Center is advancing in partnership with government agencies and the private sector.
He underscored the launch of over 60 economic activities designed to spur investment in key sectors and reported the development of 248 initiatives aimed at improving the investor experience, with 167 initiatives across 18 economic areas reaching completion.
Saudi Arabia’s ascent in the 2023 global competitiveness rankings was highlighted, with the Kingdom achieving 17th place among 64 countries for the first time and ranking third among G20 nations due to its strong economic performance.
The minister also shed light on the Saudi Business Center, which operates 17 branches in 14 cities, offering upwards of 750 services to investors and business proprietors. Additionally, 14 governmental entities and 74 organizations extend their services through these centers and communication officers.
The ministry’s electronic service platform has provided over 2 million benefits to the business community since 2020 and has introduced 170 supports to ease the investor journey.
In terms of consumer protection, Al-Qasabi mentioned the introduction of five electronic systems designed to assess e-commerce activities, monitor inventories, and oversee inspections, leading to a 28 percent drop in commercial violations in Jeddah over the previous year.