Saudi Arabia Implements Landmark Commerce Law Reforms to Boost $453 Billion Private Sector

Riyadh, November 21 (Saudi Arabia Breaking News) – Saudi Arabia's commercial landscape is set for transformative growth as new changes to commerce laws aim to bolster the Kingdom's private sector, which currently contributes SAR 1.7 trillion ($453 billion) to the national GDP. The reforms are projected to enhance local investment by up to 8.8%, according to a report by the Center for Economic Studies at the Federation of Saudi Chambers of Commerce.

Key Reforms to Drive Growth

The newly implemented commercial register law eliminates sub-registries for establishments, enabling businesses to operate nationwide under a single record. Previously, businesses were required to maintain city-specific registrations, limiting their ability to expand freely across the Kingdom.

Entrepreneurs can now establish single entities capable of managing multiple commercial activities, significantly simplifying operations and reducing administrative burdens.

Economic Impact

The Federation of Saudi Chambers estimates the reforms will save businesses between SAR 80 million ($21.3 million) and SAR 110 million ($29.3 million) annually by eliminating redundant processes. These savings are expected to fuel investment growth, with local investments anticipated to increase between 7.4% and 8.8%.

The number of branches for economic establishments is also forecast to rise by 3.8% to 5.3%, underscoring the reforms’ potential to drive expansion and innovation.

Strengthening the Workforce and Localization

The report highlights the private sector's growing role in job creation, with localization rates reaching 28% and women’s workforce participation hitting 35.4%. These advancements align with Saudi Vision 2030’s objectives of economic diversification and workforce empowerment.

Support for Entrepreneurs

The Federation of Saudi Chambers, in collaboration with the National Competitiveness Center (Tayseer), has conducted extensive studies to address investor challenges and propose practical solutions. This proactive approach aims to position Saudi Arabia as an attractive destination for global and local investors.

A New Era for Saudi Business

By simplifying operations and encouraging nationwide expansion, the reforms are poised to unlock significant growth opportunities for the Kingdom’s private sector. These changes not only align with Vision 2030 but also reinforce Saudi Arabia's commitment to fostering a dynamic, innovative, and inclusive business environment.