Saudi Ministry of Commerce Issues Over 120,000 Commercial Registrations in Q2 2024
In a remarkable surge, the Saudi Ministry of Commerce issued more than 120,000 commercial registrations in the second quarter of 2024, representing a staggering 78 percent year-on-year increase.
Key Sector Growth
Data from the ministry revealed significant growth in various sectors. E-commerce registrations saw a 17.47 percent yearly increase, reaching 40,697. Container handling services experienced a 48 percent growth with 2,457 registrations, while logistics services saw a 76 percent increase, totaling 11,928 registrations.
Industry Highlights
Urban and suburban passenger transportation, arts, entertainment, recreation, and cloud computing services all saw increases in registrations. Notably, artificial intelligence commercial registrations rose by 53 percent, reaching 8,948. The electronic games industry, mining and quarrying, and pharmaceutical manufacturing also recorded rises in commercial registrations.
Global Competitiveness
The Kingdom of Saudi Arabia ranks among the top 20 countries with the most competitive global markets, holding the 16th position out of 67 countries according to the World Competitiveness Ranking by the International Institute for Management Development. Additionally, Saudi Arabia ranks fourth among the G20 countries in terms of business legislation and infrastructure.
Commerce Sector Vision
The Saudi Ministry of Commerce aims to achieve a pioneering position for the commerce sector in the Kingdom within a fair and stimulating environment. The ministry focuses on developing and implementing effective policies and mechanisms to contribute to sustainable economic development.
Regional Trends
Riyadh recorded the highest number of commercial registrations during the second quarter of the year with 52,192, followed by the Eastern Provinces with 20,148, and Makkah with 18,904. The report also indicated that 45 percent of registrations were issued to females, with over 1.5 million commercial instruments granted in the Kingdom.
Non-Oil Private Sector Growth
Saudi Arabia’s non-oil private sector showcased robust growth in June, driven by increased demand, higher output levels, and a rise in employment. According to the latest S&P Global Purchasing Managers’ Index, the Riyad Bank Saudi Arabia PMI stabilized at 55, marking the lowest reading since January 2022. Despite a slowdown in new orders, non-oil businesses reported a substantial rise in output, leading the region with the strongest expansion figures.