RIYADH: Business registrations in Saudi Arabia saw a 48 percent year-on-year increase during the first quarter of 2025, with 154,638 commercial records issued, according to official data.

The Ministry of Commerce, which issued the data, explained that a commercial registration certificate legally verifies a business’s official status within the Kingdom. These records are mandatory for all businesses operating in Saudi Arabia, as they are required to open a bank account, hire employees, sign contracts, and carry out other business activities.

The data also revealed that 71 percent of the total commercial records issued were concentrated in three key regions: Riyadh, Makkah, and the Eastern Province.

This surge in registrations aligns with recent reforms to Saudi Arabia’s business registration system. Notably, the introduction of the new Commercial Register Law and Trade Names Law has streamlined the process.

One of the key changes is the abolition of subsidiary registers, meaning that a single commercial register now suffices for all businesses. Furthermore, businesses no longer need to specify the city of registration, as a single registration is valid nationwide.

The newly released ministry report stated: “Promising sectors represent key opportunities outlined by Saudi Vision 2030 for both local and foreign businesses. In this newsletter, we highlight critical sectors that directly contribute to the country’s gross domestic product, including technology, tourism, entertainment, research and development, and more.”

The report further emphasized: “These sectors offer businesses significant opportunities to grow and expand partnerships.”

Additionally, the bulletin revealed that 45 percent of the total commercial records issued to institutions are owned by women.

E-commerce

The bulletin also reported a 6 percent year-on-year surge in e-commerce registrations in the first quarter of the year, as a total of 41,322 permits were issued between January and March.

Riyadh took the lead in registrations with 17,092, followed by Makkah at 10,412 and the Eastern Province at 6,534. Madinah followed as it allocated 1,939 permits, and Qassim issued 1,342.

Cloud computing registrations

Saudi Arabia’s cloud computing registrations saw a 33 percent year-on-year increase in the first quarter of 2025.

Cloud computing refers to the on-demand availability of system resources, specifically data storage, without direct active management by the user.   

The government bulletin reported the issuance of as many as 3,278 cloud computing permits between January and March.       

This surge underscores the Kingdom’s aim to make the region a hub for technology by 2030.    

It also correlates with the Saudi government’s proactive approach to implementing digital technologies, driving economic diversification, and boosting innovation.

As per the ministry report, Riyadh took the lead in registrations with 2,065, followed by Makkah at 622 and the Eastern Province at 352. Madinah came next as it allocated 73 permits, and Asir issued 38.  

Virtual and AR technologies

The analysis also indicated that Saudi Arabia’s virtual and augmented reality technologies witnessed a 39 percent year-on-year rise in the first three months of 2025, as 8,218 permits were issued between January and March.

Riyadh took the lead in registrations with 5,060, followed by Makkah at 1,637 and the Eastern Province at 837. Madinah came next as it allocated 245 permits, and Qassim issued 112.