Saudi businesses poised for expansion increased by 16 percent in the final quarter of 2023, fueled by ongoing private sector reforms driving innovation.
Figures from the Ministry of Commerce revealed that 2,811 establishments have adapted their organizational structures to increase their size, compared to 2,423 by the end of September 2023.
The latest report from the government department underscored the Kingdom’s expanding business landscape, noting that 2,722 establishments transitioned into companies in the last quarter, up from 2,335 in the third quarter.
The analysis also indicated a significant increase in the listing of joint-stock companies, with 15 in the fourth quarter compared to six in the previous quarter.
During the same period, the Kingdom saw 59 companies transitioning into joint-stock structures, slightly down from the 75 conversions in the preceding quarter.
However, the report highlighted a notable increase, with 15 establishments modifying their structures to become joint-stock companies, more than doubling the seven enterprises that made this change in the third quarter.
The commerce sector in Saudi Arabia witnessed significant growth in the fourth quarter of 2023, registering a 23 percent increase in commercial registrations compared to the same period the previous year.
Issued by the Ministry of Commerce, these certificates legally confirm a business’s official status in Saudi Arabia.
The government bulletin reported the issuance of 95,863 such instruments across the Kingdom between October and December of 2023.
This surge underscores Saudi Arabia’s commitment to the implementation of Vision 2030 and economic diversification, signaling an encouraging environment for foreign investment.
According to the ministry report, Riyadh took the lead in registrations with 33,343, followed by Makkah at 20,535 and the Eastern Province at 13,546. These three cities contributed 70 percent of the total commercial registers issued during this period. Asir issued 5,409 permits, and Madinah followed with 4,970.
Accordingly, Riyadh, Makkah, and the Eastern Province represent 70 percent of the total number of commercial registers issued during the period.
In addition, the ministry statement also revealed that up to 45 percent of the records issued to institutions are owned by women.
The report also shed light on the fact that the total number of records for land transportation of goods in Saudi Arabia surged 21 percent year-on-year to reach 33,447 in the final quarter of 2023.
Regarding the Kingdom’s hospitality sector, the data disclosed that the total number of registrations for boutique hotels jumped 74 percent in the fourth quarter compared to the corresponding quarter a year earlier, reaching 1,911.—ARAB NEWS
