Saudi Arabia Sees Record 78% Increase in Business Registrations in Q2 2024
RIYADH — The Saudi Ministry of Commerce reported a substantial surge in business registrations for the second quarter of 2024, issuing over 120,000 new registrations, which marks a 78 percent increase from the previous year. Ministry data indicates that 121,521 official business identification cards were granted in the quarter ending in June, up from 68,222 during the same period in 2023.
Growth Across Key Sectors
The increase spans multiple pivotal sectors. E-commerce registrations rose by 17.47 percent to 40,697. Container handling services saw a striking 48 percent growth, totaling 2,457 registrations, while logistics services experienced a 76 percent surge, reaching 11,928 registrations. Other sectors, including urban and suburban passenger transportation, arts, entertainment, recreation, and short-term accommodation, as well as cloud computing services, also noted increases.
Surge in AI Registrations
Particularly notable was the 53 percent rise in artificial intelligence business registrations, which hit 8,948. The electronic games industry, mining and quarrying, and pharmaceutical manufacturing also experienced increases in business registrations.
Saudi Arabia’s Competitive Edge
This significant growth aligns with Saudi Arabia’s status as one of the top 20 most competitive global markets, ranking 16th out of 67 countries in the World Competitiveness Ranking. The Kingdom also holds the 4th position among G20 nations regarding business legislation and infrastructure.
The Ministry of Commerce is dedicated to devising and implementing policies that foster sustainable economic development. Regionally, Riyadh reported the highest number of new registrations with 52,192, followed by the Eastern Provinces with 20,148, and Makkah with 18,904. Notably, 45 percent of the registrations were issued to female entrepreneurs.
For further details, visit The Ministry of Commerce.
Growth in Non-Oil Private Sector
Saudi Arabia’s non-oil private sector also demonstrated strong growth in June, driven by increased demand, higher output, and rising employment. Although the S&P Global Purchasing Managers’ Index for Riyad Bank’s Saudi Arabia PMI stabilized at 55, marking the lowest reading since January 2022, the Kingdom led the region with the most robust expansion figures.
Source: Economy Middle East
