Saudi Arabia is emerging as a powerhouse for business growth, with the Ministry of Commerce reporting a remarkable surge in business registrations in the second quarter of 2024. Over 120,000 new business identifications were issued, reflecting a significant 78% increase compared to the previous year. This upward trend saw 121,521 business identification cards distributed from April to June, a notable rise from 68,222 in the same period last year.
Thriving Sectors Propel Economic Growth
The data highlights impressive growth across several key sectors. E-commerce continues to flourish with a 17.47% increase, reaching 40,697 registrations. Container handling services and logistics are also on the rise, with growth rates of 48% and 76% respectively, translating to 2,457 and 11,928 new registrations. Other sectors experiencing growth include urban and suburban passenger transportation, arts, entertainment, recreation, and cloud computing services.
Artificial Intelligence and Innovation on the Rise
Artificial intelligence is a standout area, with business registrations soaring by 53% to 8,948. This growth trajectory is mirrored in other innovative fields such as electronic games, mining, quarrying, and pharmaceutical manufacturing, all witnessing an increase in business activity.
Saudi Arabia: A Competitive Global Leader
The Kingdom’s dynamic business environment is reinforced by its ranking among the top 20 most competitive global markets, holding the 16th position out of 67 countries in the World Competitiveness Ranking. Furthermore, Saudi Arabia is 4th among the G20 nations in terms of business legislation and infrastructure. The Ministry of Commerce is committed to fostering sustainable economic development through strategic policy implementation. Regionally, Riyadh leads with the highest number of new registrations at 52,192, followed by the Eastern Provinces with 20,148, and Makkah with 18,904. Impressively, 45% of the registrations were attributed to female entrepreneurs.
Moreover, Saudi Arabia’s non-oil private sector is experiencing robust expansion, driven by increased demand, heightened output, and rising employment levels. According to the S&P Global Purchasing Managers’ Index, the Riyad Bank Saudi Arabia PMI remained stable at 55, marking the lowest reading since January 2022, yet the Kingdom continues to lead the region with the most vigorous expansion figures.
These developments underscore Saudi Arabia’s growing appeal as an investment destination, offering promising opportunities for foreign investors eager to tap into the Kingdom’s dynamic and evolving market.
