The number of commercial establishments in Saudi Arabia has increased to 1.81 million
Introduction to the economic boom in the Kingdom
In a strong indicator of accelerating economic growth and an expanding business environment, a recent survey conducted by Okaz newspaper, based on official government reports, revealed a significant surge in the number of commercial entities in Saudi Arabia. The total number of commercial establishments exceeded 1.81 million by the end of the first quarter of this year. This impressive figure reflects the success of economic policies aimed at diversifying income sources and reducing dependence on oil.
General context: Saudi Vision 2030 and support for the private sector
These positive figures are a direct result of the structural reforms spearheaded by Saudi Vision 2030.Since the Vision's launch, the Saudi government, represented by the Ministry of Commerce and the General Authority for Small and Medium Enterprises (Monsha'at), has worked to remove obstacles for investors and entrepreneurs, digitize government services, and streamline the process of obtaining commercial registrations. This comprehensive support has created a fertile environment that has encouraged both citizens and foreign investors to inject their capital into the Saudi market.
Geographical distribution: Riyadh leads the economic scene
Statistics revealed a significant concentration of commercial activity in the capital, with the Riyadh region accounting for approximately 50.9% of all establishments, equivalent to 924,266. This prominence aligns with Riyadh's development strategy to become one of the world's top 10 city economies, supported by a program to attract regional headquarters for international companies. The Makkah region came in second with 276,611 establishments (15.24%), followed by the Eastern Province with 184,687 establishments (10.17%). The remaining regions (Qassim, Asir, Madinah, Jazan, Hail, Najran, Tabuk, Al-Jawf, the Northern Borders, and Al-Baha) each accounted for less than 10%.
Dominance of micro and small enterprises
Small and medium-sized enterprises (SMEs) are the backbone of any modern economy. According to monitoring data, micro-enterprises (those with 5 or fewer employees and revenues of 3 million riyals or less) dominated the market with a dominant 89.27%, totaling 1.62 million establishments. Small enterprises (6-49 employees and revenues of 3-40 million riyals) numbered approximately 168,376, representing 9.28%. Medium-sized enterprises reached 22,129, while large enterprises (250 or more employees and revenues exceeding 200 million riyals) stood at 4,342, confirming the growing culture of self-employment and entrepreneurship in Saudi society.
Most active sectors: Construction leads the way
At the sector level, general construction companies specializing in residential buildings the list with 175,000 projects (9.64%), followed by building renovation companies with over 49,000 projects (2.73%). This significant activity in the contracting sector is closely linked to mega-projects such as NEOM, Qiddiya, and the Red Sea Project, in addition to housing projects. Other sectors that emerged included vehicle rental (2.54%), storage facility operations (2.53%), and restaurants (2.4%). Training institutes, salons, land transport, and cafes each accounted for between 1% and 2% of the total.
Importance and expected impact
This increase in the number of establishments has far-reaching positive effects. Locally, it contributes to creating hundreds of thousands of job opportunities for Saudi youth, thus supporting efforts to reduce unemployment rates. Regionally and internationally, this growth solidifies the Kingdom's position as the largest and most dynamic trading market in the Middle East, enhancing its attractiveness to foreign direct investment and ensuring the sustainability of non-oil GDP growth.
