The Ministry of Commerce and Investment has reported steady increases in the number and capital of privately held companies, with 4,545 companies of various types registered during the year 1438 AH, representing a 9% growth rate in the number of companies compared to the year 1437 AH
The Ministry’s statistics showed that the total capital of companies established and those converted to closed joint-stock companies in 1438 AH exceeded 23 billion riyals, thereby raising the growth rate in the capital of closed joint-stock companies to 49 % compared to the year 1437 AH. The average capital of companies also rose from 3 to 5 million riyals during the same period. The number of companies registered in the main registry of issuing companies during the year 1437 AH reached 4,176, with a total capital of 15 billion riyals for closed joint-stock companies, In 1436 AH, the figures stood at 4,399 companies and 11 billion in capital for closed joint-stock companies.
It is worth noting that the number of companies operating in the Kingdom exceeded 66,000 of various types, This comes as the trade and investment system continues its relentless efforts to improve the business environment, empower enterprises, provide a stimulating environment for investment, and develop advanced projects to serve the national economy as part of its initiative under the National Transformation Program 2020.
The Kingdom has achieved unprecedented progress in the 2018 Ease of Doing Business indicators following the implementation of numerous reforms and measures that have contributed to improving the business and investment environment and bolstered investor confidence.
The World Bank Group report ranked the Kingdom among the top 20 reforming countries in the world, second among high-income countries, and second among G20 nations in terms of implementing reforms to improve the business climate.
The Kingdom’s progress in the 2018 Ease of Doing Business indicators was reflected in 6 out of 10 areas, namely: Protection of Minority Investors, Enforcement of Contracts, Starting a Business, Trading Across Borders, Registering Property, and Resolving Insolvency.
The Kingdom’s robust reforms have driven progress in the protection of minority shareholders, where it ranked tenth globally, which sends a strong signal to investors interested in investing in the Kingdom, boosts investor confidence in the Saudi market, and helps attract foreign investment.
Measures taken by the trade and investment system to modernize the Kingdom’s existing laws and regulations—particularly the Companies Law—have helped strengthen the principles of governance, transparency, and disclosure in the corporate sector, as well as develop and improve the business environment, as the Companies Law is one of the most prominent economic development laws enacted to date, providing a regulatory environment that fosters and stimulates initiative and investment, thereby enhancing the value of companies and growing their activities and contributions to the national economy.
