New Commercial Registers System Set To Increase Saudi Investment By Up To 8.8%

Saudi Arabia's business environment is poised for significant change, with local investment expected to increase by up to 8.8%. This projection follows the introduction of a new commercial register system. The Center for Economic Studies at the Federation of Saudi Chambers of Commerce conducted an analysis highlighting the system's potential to enhance the business climate.

The report provides insights into the private sector's current contributions, noting its SAR1.7 trillion impact on GDP and 1.5 million active commercial registers. It also highlights localization efforts at 28% and women's workforce participation reaching 35.4%. These figures underscore the sector's growing influence in the economy.

Central to these developments are reforms within the new commercial register system. Notably, sub-registries for establishments have been removed, allowing businesses to operate nationwide under a single record. Entrepreneurs can now own one establishment capable of managing multiple activities, eliminating city-specific registration requirements.

This reform is expected to bring substantial financial benefits. By removing sub-registries, businesses could save between SAR80 million and SAR110 million annually. Such savings are anticipated to drive investment growth, with local investments projected to rise between 7.4% and 8.8%.

The number of branches for economic establishments is predicted to grow by 3.8% to 5.3%. This increase highlights the reforms' potential to encourage expansion and innovation across various sectors within the Kingdom.

The Federation of Saudi Chambers has played an active role in this transformation process. They have conducted comprehensive studies to identify challenges faced by investors and collaborated with the National Competitiveness Center (Tayseer) to propose effective solutions.

These efforts aim to create a more conducive environment for business operations and investments in Saudi Arabia, aligning with broader economic goals and fostering sustainable growth.

With inputs from SPA