Saudi Arabia's New Commercial Registers System Expected To Boost Investment By 8.8%
|By eliminating sub-registries, businesses are projected to save SAR80 million to SAR110 million annually.
A detailed report by the Center for Economic Studies at the Federation of Saudi Chambers of Commerce mentioned that Saudi Arabia's business landscape expects a significant shift, with local investment projected to grow by up to 8.8% under the country's new commercial register law.
The report paints a vibrant picture of the Saudi private sector's current impact, revealing its SAR1.7 trillion contribution to the GDP and a total of 1.5 million active commercial registers. It also mentioned significant strides in localization, currently at 28%, and the growing role of women in the workforce, where participation rates reached 35.4%. According to Saudi Press Agency report, a series of reforms introduced by the new commercial register law are at the core of this progress.
Major changes include the removal of sub-registries for establishments, allowing businesses to operate nationwide with a single record. Entrepreneurs can now own a single establishment capable of handling multiple commercial activities, while the city-specific registration requirement has been abolished, paving the way for businesses to expand freely across Saudi Arabia. By eliminating sub-registries, businesses are projected to save SAR80 million to SAR110 million annually. This financial relief is expected to spur investment growth, with local investments anticipated to rise between 7.4% and 8.8%.