Saudi Arabia’s business sector experienced remarkable acceleration last quarter as official data confirms over 80,000 new commercial registrations issued nationwide during Q2 2025. Consequently, the total number of active businesses across the Kingdom now approaches 1.72 million.
High-growth industries like artificial intelligence, blockchain, and big data analytics drove the surge. Additionally, sectors such as financial services, insurance, gaming, and entertainment contributed significantly, as per the Ministry of Commerce’s quarterly Business Sector Bulletin.
Furthermore, the increase in business activity highlights Saudi Arabia’s efforts to diversify its economy under Vision 2030. Sweeping reforms aim to boost the private sector and reduce oil reliance with the National Transformation Program focuses on infrastructure, digitalization, and regulatory improvements to attract investments and spur entrepreneurship nationwide.
Regulatory Reforms and Market Transparency
Minister of Commerce Majed Al-Qasabi explained that the rectification is part of broader measures aimed at combating commercial concealment, a key challenge hindering local economic growth. The ministry has recently worked on rectifying the status of commercial registrations and updating their data to ensure compliance with regulations and to enhance market transparency.
The second quarter also saw the implementation of the newly approved Commercial Register Law and Trade Names Law. These reforms have eliminated the need for separate subsidiary registrations by allowing businesses to operate under a single commercial record across the nation, regardless of their geographic location. The changes aim to simplify licensing, reduce administrative burdens, and improve the overall ease of doing business in the Kingdom.
Riyadh accounted for the largest share of new registrations during the quarter with 28,181 licenses. Makkah followed with 14,498, while the Eastern Province recorded 12,985 new licenses. Qassim and Asir also saw significant activity, with 4,920 and 3,875 new commercial records, respectively. Asir, in particular, has been gaining prominence as an investment destination.
Women Entrepreneurs Lead the Charge
Women’s participation in the commercial sector continued to rise, with female entrepreneurs accounting for 49% of newly issued commercial records. Limited liability companies (LLCs) remained the dominant form of business structure, with 10,954 LLCs registered during the quarter. Partnerships and joint stock companies also showed solid activity, further diversifying the business landscape.
Several sectors experienced strong year-on-year growth. Registrations related to cloud data storage and analytics increased by 48%, reaching 5,894 records, with Riyadh leading the way at 3,775. Activities related to artificial intelligence increased by 34%, resulting in 14,409 new records, of which 8,909 were registered in the capital. The franchise sector expanded significantly as well, with activity up 64% compared to the same period last year, totaling 2,863 new registrations, driven largely by the food and beverage, retail, and services segments.
Foreign Investment on the Rise
Investor interest from abroad also surged, with registrations by foreign and GCC investors rising by 38% in the second quarter to more than 70,000 new records. Foreign nationals made 38,640 registrations and 31,488 made by regional Gulf investors. The majority of this investment was directed toward non-residential construction and building development, signaling sustained demand in real estate and infrastructure.
Moreover, the ministry also reported 39,366 active commercial records in e-commerce by the end of the second quarter, underscoring the Kingdom’s rapid digitalization. Meanwhile, gaming, leisure, and entertainment activities continued to gain traction, with a growing number of licenses issued in these sectors.
