Saudi Arabia registered 121,521 companies in Q2 2024

The Saudi Ministry of Commerce issued more than 120,000 business registrations in the second quarter of 2024, up 78 percent year-on-year. A total of 121,521 official business IDs were issued in the three months ending in June, up from 68,222 during the same period last year, according to the ministry.

Growth in key sectors

The data also revealed growth in registrations across several key sectors. E-commerce saw a year-on-year increase of 17.47 percent, reaching 40,697 registrations. Container handling services saw a 48 percent increase with 2,457 registrations, while logistics services saw a 76 percent increase, reaching a total of 11,928 registrations. Sectors such as urban and suburban passenger transport, arts/entertainment/recreation, and short-term accommodation saw growth, as did cloud computing services.

AI registration growth

Notably, AI company registrations increased by 53 percent to 8,948. The e-gaming, mining/quarrying, and pharmaceutical manufacturing industries also saw an increase in company registrations.

Saudi Arabia’s Competitive Advantage

This growth comes as Saudi Arabia has emerged as one of the top 20 most competitive global markets, ranking 16th out of 67 countries in the World Competitiveness Ranking. The country also ranks 4th among the G20 for business regulations and infrastructure.

The Ministry of Commerce aims to develop and implement policies that contribute to sustainable economic development. In the region, Riyadh recorded the highest number of registrations at 52,192, followed by the Eastern Provinces with 20,148 and Makkah with 18,904. Interestingly, 45 percent of the registrations were issued to women.

Read more: Saudi Arabia posts record trade surplus of over $11 billion

Growth in the non-oil private sector

Saudi Arabia’s non-oil private sector also showed solid growth in June, driven by increased demand, higher production and rising employment. The S&P Global Purchasing Managers’ Index showed the Riyad Bank Saudi Arabia PMI stabilized at 55, its lowest reading since January 2022, but the Kingdom still led the region with the strongest expansion indicators.

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