Saudi Arabia`s new business registrations witnessed a 48% year-on-year increase during the first quarter of 2025 according to official data. The Ministry of Commerce (MC) confirmed that 154,638 commercial records were issued and also revealed that 45% were women owned businesses. It further explained that a commercial registration certificate is mandatory and legally verifies a business’s official status within the Kingdom.
New Business Registrations Align with Government Streamlining Efforts
Additionally, data revealed that 71% of commercial records issued were concentrated in three regions Riyadh, Makkah and the Eastern Province. Notably, the surge in registrations aligns with recent reforms including the streamlining of Saudi Arabia’s business registration system. A key amendment is the abolition of subsidiary registers, meaning that a single commercial register now covers all businesses. Furthermore, businesses no longer need to specify the city of registration, as a single registration is valid nationwide. In line with the Saudi Vision 2030, key sectors have been identified that directly contribute to the country’s gross domestic product. Such sectors include technology, tourism, entertainment, research and development and accordingly offer local and foreign businesses promising opportunities.
New Business Registration – Sector by Sector Breakdown
E-Commerce registrations showed a 6% increase year-on-year in quarter one of 2025, as a total of 41,322 permits were issued. Riyadh recorded the largest amount of registrations with 17,092, followed by Makkah at 10,412 and the Eastern Province at 6,534.
Cloud computing company registrations saw a 33% year-on-year increase in the same period with 3,278 permits issued. Most importantly, this surge demonstrates the Saudi government’s proactive approach to implementing digital technologies, driving economic diversification and boosting innovation. Riyadh documented most registrations with 2,065, next was Makkah at 622 and the Eastern Province with 352.
The virtual and augmented reality technologies sector witnessed a huge 39% year-on-year rise, with 8,218 permits issued. Riyadh led the way with 5,060 registrations, followed by Makkah at 1,637 and the Eastern Province at 837.
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