Business registrations in Saudi Arabia witnessed a significant growth of 12 percent from 2019 to 2023, totaling more than 1.12 million commercial records. This is according to Saudi Arabia’s Minister of Commerce Majid Al-Qasabi.
During a meeting in Jeddah aimed at discussing challenges and improving the country’s business environment, Al-Qasabi shared these figures. According to the Saudi Press Agency (SPA), the session was attended by Mohammed Yousuf Naghi, chairman of the Jeddah Chamber of Commerce, along with board members and various members of the community, including investors, businesspeople, and entrepreneurs.
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Minister Al-Qasabi highlighted that Jeddah experienced a notable surge of 14 percent in commercial records over the past five years, surpassing 192,000 registrations. He also noted that among Saudi cities, Jeddah ranks second in terms of company registrations, with only Riyadh ahead in terms of volume.
During the gathering, Al-Qasabi pointed out that there was a 40 percent increase in enrollments for limited-liability companies, totaling 229,000, while joint-stock firms witnessed a 15 percent increase, reaching 2,756.
The minister underscored the ongoing efforts to strengthen the legislative framework, with more than 70 laws either prepared or improved since the initiation of Saudi Vision 2030. He particularly highlighted the importance of the Companies Law, which plays a pivotal role in facilitating the business climate and investment landscape. This law explicitly regulates the operations and longevity of family enterprises, fosters entrepreneurship, and provides crucial support to startups.
Al-Qasabi reiterated the commitment to enhancing systems that promote trust in the business sphere, including the Consumer Protection Law, Commercial Transactions Law, Trademark Law, and Commercial Register Law.
Legislative and procedural reforms
The minister discussed the legislative and procedural reforms carried out by the National Competitiveness Center in collaboration with government entities and the private sector. He emphasized the introduction of more than 60 economic activities aimed at boosting investment opportunities in promising sectors. Additionally, he mentioned the development of 248 initiatives to enhance the investor experience, with 167 initiatives already completed across 18 economic sectors.
Al-Qasabi highlighted the collaborative efforts that contributed to Saudi Arabia’s progress in the global competitiveness rankings of 2023, where the Kingdom secured the 17th position out of 64 nations for the first time. He also emphasized that Saudi Arabia achieved the third ranking among G20 countries, supported by its robust economic performance.
The senior official mentioned that the Saudi Business Center operates 17 branches across 14 cities, providing more than 750 services to investors and business owners. He noted that 14 government entities offer services at these local branches, with an additional 74 organizations providing assistance through communication officers.
Furthermore, Al-Qasabi stated that since its launch in 2020, the electronic service platform of his ministry has delivered over 2 million benefits to investors and the business sector. It has also introduced 170 supports to simplify the investor journey.
Five electronic systems
Regarding consumer protection, Al-Qasabi explained that the Ministry of Commerce has implemented five electronic systems, specifically aimed at evaluating e-commerce platforms, tracking inventory, and overseeing inspection processes. He also highlighted the increase in compliance rates among commercial entities in Jeddah, with violations decreasing by 28 percent compared to the previous year.
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