The Saudi Ministry of Commerce issued in the second quarter of 2024 more than 120,000 business registrations, marking a 78 percent increase year-over-year. According to ministry data, a total of 121,521 official business identification cards were issued during the three months ending in June, up from 68,222 in the same period last year.
Growth across key sectors
The data also revealed registration growth across several key sectors. E-commerce saw a 17.47 percent yearly increase, reaching 40,697 registrations. Container handling services experienced 48 percent growth with 2,457 registrations, while logistics services saw a 76 percent increase, totaling 11,928 registrations. Sectors like urban and suburban passenger transportation, arts/entertainment/recreation, and short-term accommodation all recorded increases, as did cloud computing services.
Surge in AI registrations
Notably, artificial intelligence business registrations rose by 53 percent, reaching 8,948. The electronic games industry, mining/quarrying, and pharmaceutical manufacturing also saw increases in business registrations.
Saudi Arabia’s competitive edge
This surge comes as Saudi Arabia ranks among the top 20 most competitive global markets, holding the 16th position out of 67 countries according to the World Competitiveness Ranking. The country also ranks 4th among the G20 in terms of business legislation and infrastructure.
The Ministry of Commerce aims to develop and implement policies to contribute to sustainable economic development. Regionally, Riyadh recorded the highest number of registrations with 52,192, followed by the Eastern Provinces with 20,148 and Makkah with 18,904. Notably, 45 percent of registrations were issued to females.
Read more: Saudi Arabia posts record trade surplus of over $11 billion
Growth in non-oil private sector
Saudi Arabia’s non-oil private sector also showcased robust growth in June, driven by increased demand, higher output, and rising employment. The S&P Global Purchasing Managers’ Index showed the Riyad Bank Saudi Arabia PMI stabilized at 55, marking the lowest reading since January 2022, but the Kingdom still led the region with the strongest expansion figures.
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